Southwest Airlines Reports First Quarter 2026 Net Profit of $227 Million or $0.45 per Diluted Share

Southwest has reported a Q1 2026 net profit of $227 million or $0.45 per share on a year-over-year increase in revenue of 12.8 percent to $7.25 billion. The carrier ended the period with $3.3 billion in cash and cash equivalents and a revolving credit line of $1.5 billion.

Southwest Boeing 737-8 MAX - Courtesy Southwest Airlines

On Wednesday (April 22, 2026), Southwest Airlines reported their first quarter financial results for the period ending March 31, 2026.  The carrier reported a first quarter net profit of $227 million or $0.45 per diluted share on a year-over-year increase in revenue of 12.8 percent to $7.25 billion, a first quarter record.  Southwest’s first quarter revenue per available seat mile (RASM) increased 11.2 percent versus the same period last year to 17.24 cents, while cost per available seat mile (CASM) increased 2.6 percent to 16.46 cents.  Costs excluding fuel (CASM-ex) increased 1.5 percent compared to Q1 2025 to 13.23 cents.  Southwest ended the first quarter with $3.3 billion in cash and cash equivalents and a revolving credit line of $1.5 billion.  The carrier also has unencumbered aircraft and other related assets with a net book value of approximately $16.5 billion.

In Wednesday’s announcement, Southwest Airlines’ President and CEO, Bob Jordan, said,

“First quarter 2026 marked a turning point for Southwest, as our broad set of commercial, operational, and cost initiatives is now translating into terrific results.  Demand for our new product offerings drove record first quarter revenues, double‑digit unit revenue growth, and significant improvement in earnings and margins.  These results were achieved despite significantly higher fuel costs, underscoring the momentum across the business and the strength of our transformed business model.

"Our Customers have embraced and value our new products, and that is reflected in our financial performance.  Demand continues to be strong, and we remain focused on controlling what we can control by managing costs, optimizing revenue initiatives, and directing capacity toward higher‑return opportunities.  While the external environment remains uncertain, we are confident in our positioning and the strong momentum we are seeing at Southwest.”

During the first quarter, Southwest took delivery of 10 Boeing 737-8 MAX aircraft and retired 13 aircraft, including eight Boeing 737-700 aircraft.  This also includes the sale of three Boeing 737-700s and two Boeing 737-800s.  The company ended the quarter with a fleet of 800 aircraft.  During 2026, Southwest expects 66 Boeing 737-8 MAX deliveries and plans to retire approximately 60 aircraft. 

Southwest also continued to optimize their network during the period, and announced the suspension of operations at Chicago O'Hare (ORD) and Washington Dulles (IAD) from June 2026, and the reallocation of capacity to higher-performing markets.

Founded in 1971, Dallas-based Southwest Airlines (NYSE: LUV) has distinguished itself by offering exemplary customer service delivered by over 72,000 team members at 117 airports across 11 countries.  Southwest offers a robust point-to-point network with a strong presence across leisure and business markets.  During peak travel seasons, the airline operates more than 4,000 daily departures, and in 2024, Southwest carried over 140 million customers.  Southwest also continues to develop tangible steps toward achieving carbon neutrality by 2050, including offering customers the opportunity to help the airline offset carbon emissions. 

Source: Southwest Airlines