Rising fuel prices are set to cost Southwest Airlines $1 billion in the second quarter, the carrier said in its investor call on Thursday morning. The airline, which stopped fuel hedging last year, has been rocked by higher prices amid the war in Iran along with the rest of the industry.
“Clearly revenues, and therefore fares, are underneath the increase in fuel. So we’ve not caught the increase in fuel by any any stretch of the imagination,” CEO Bob Jordan said.
Despite its fuel expense, Southwest said its earlier forecast of full-year earnings of $4 per share — which would be more than 4x its 2025 profit — could still happen. When it reported earnings after the bell on Wednesday, the airline declined to update the forecast given “ongoing macroeconomic uncertainty.”
“There are scenarios where absolutely we could still hit the $4. It depends on, you know, fuel and revenue trends from here. We just felt like it was not productive to introduce a new guide or a range, given how volatile fuel is,” Jordan said.
