News about Southwest Airlines

Southwest Airlines became the third major U.S. airline this month to cut its 2026 profit forecast due to higher fuel prices, though CEO Bob Jordan said travelers keep booking despite higher fares. The carrier now expects adjusted earnings of $2.60 to $2.85 per share this year, down from its July forecast of $3.25 to as much as $4.25. In the third quarter, adjusted EPS was 66 cents versus 58 cents expected, and adjusted revenue was $8.42 billion against $8.25 billion. It forecasts fourth-quarter EPS of 55 to 80 cents and unit revenue up as much as 21% from a year earlier. Its average fare rose almost 27% to $231.69, while revenue passengers fell 3.2% to 33.47 million.

Starting next year, Southwest is scrapping its A-List and A-List Preferred tiers in favor of Silver, Gold and Platinum levels, with A-List members moving to Silver and A-List Preferred members to Gold. Qualifying thresholds are 35,000 Tier Qualifying Points (TQPs) or 25 flights for Silver, 65,000 TQPs or 50 flights for Gold, and 140,000 TQPs or 100 flights for the new Platinum tier. From the 2027 earning year, Companion Pass benefits will be earned through TQPs, qualifying flights, milestone rewards or Platinum status, replacing the current requirement of 135,000 qualifying points or 100 one-way flights. The airline is also building Icon lounges in four U.S. cities with its credit card partner Chase and adding perks for customers between status tiers.