Southwest Airlines

Q2 FY2026 EarningsQ2 FY26 operating revenues reached an all-time quarterly record of $8.4B, up 16.4% YoY, despite a $285M negative breakage revenue adjustment. Net income grew 9.4% YoY to $233M, with diluted EPS at $0.47 (+20.5% YoY). Growth was driven by strong passenger yield (+15.4%) and new ancillary products like bag fees and assigned seating. Operating expenses rose 16.1% YoY to $8.1B, primarily due to a 67.0% spike in fuel costs and a 7.3% increase in labor costs.