Southwest Airlines stock gains 1.24 percent as fuel risk persists

Published on 09/25/2026 at 12:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Southwest Airlines stock stood at USD 41.55 on September 24, 2026, below its USD 55.11 yearly high. Q2 adjusted EPS reached USD 0.94, while UBS cut its target to USD 49.

Weißes Passagierflugzeug hebt bei Sonnenuntergang von der Startbahn ab — Southwest Airlines zeigt ein generisches weißes Passagierflugzeug beim Start ISIN US8447411088 am Flughafen, Illustration mit AI erstellt.

Southwest Airlines stock (ISIN US8447411088) stood at USD 41.55 on the NYSE on September 24, 2026, up USD 0.51 or 1.24 percent from the prior close. The immediate investor question is whether stronger demand can offset the fuel burden that has narrowed the airline's earnings cushion.

Fuel costs test the guidance

Southwest's second-quarter 2026 adjusted EPS reached USD 0.94, up 120 percent from the prior-year period, while adjusted operating revenue reached a record USD 8.7 billion and adjusted operating margin was 6.7 percent, Yahoo Finance reported in a September 2026 overview.

The counterweight is the revised full-year 2026 adjusted EPS guidance of USD 3.25 to USD 4.25, replacing prior guidance of at least USD 4.00. The same source said the revision reflected the forward fuel curve as of July 17 and a year-to-date fuel headwind of USD 1.33 per share.

Demand supports the third quarter

Southwest CFO Tom Doxey said on September 17, 2026, that autumn demand was exceptionally strong and that the airline remained on track to meet its third-quarter EPS guidance even after additional fuel costs, according to Futunn. The guidance range is USD 0.50 to USD 0.75 in adjusted EPS, compared with a market consensus of USD 0.59.

That operating update matters because Southwest's stock remains USD 13.56 below its 52-week high of USD 55.11, a 24.60 percent gap. The 52-week low is USD 29.26, leaving the current price 41.99 percent above that level.

Analysts reset their targets

UBS lowered its Southwest price target from USD 56 to USD 49 on September 10, 2026, while maintaining a Buy rating, according to MarketBeat. The new target is 17.93 percent above the September 24 price, but the reduction shows how fuel sensitivity is shaping valuation even after the earnings beat.

MarketBeat also reported that 22 analysts carried a consensus Hold rating, with nine Buy ratings, nine Holds and four Sells, and an average target of USD 48.41. Southwest's next earnings report is scheduled for October 21, 2026, according to TradingView.

Stock trades below its yearly high

Southwest Airlines stock was trading at USD 41.55 on the NYSE on September 24, 2026, with volume of 5,960,207 shares and a market capitalization of USD 20,326,592,400. The next earnings release will put the USD 0.50 to USD 0.75 third-quarter guidance range against the fuel and demand signals now driving the shares.