Q3 FY26 · Ended Sep 30, 2026 · View SEC filing
Fewer passengers, much higher fares
Southwest carried fewer people than a year earlier, yet revenue rose 21.2% because each passenger paid far more.
For investorsWhat the fare gain depends on from here
For foundersUnbundling a product customers thought was included
Bags and seats sold separately brought $898M, more than twice operating income, which puts the new charges at the center of the recovery.
With aircraft and flights nearly unchanged, revenue grew faster than costs and the operating margin rose to 4.5% from 0.5%.
Capital spending of $1,006M was about twice operating cash flow, so free cash flow was negative in a profitable quarter.
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Business Lens describes Southwest Airlines from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.
