Southwest Airlines reported record second-quarter revenue of $8.4 billion in 2026, up 16.4% year over year. Despite an $889 million increase in fuel costs, the airline still posted a $233 million profit. Southwest paid an average of $3.92 per gallon for fuel during the quarter.
The strong results come as the airline continues to reshape its long-standing business model. Southwest has ended its “two bags fly free” policy and open seating system, while introducing extra-legroom seats and expanding partnerships with online travel agencies (OTAs). The airline is also considering launching airport lounges. CEO Bob Jordan said a “broader and more diversified set of revenue and commercial levers” helped drive the results, adding that fare increases have not weakened demand.
Looking ahead, Southwest is also considering long-haul international flights. CEO Jordan said the airline is likely to target a limited number of high-demand destinations rather than building a global network on the scale of Delta Air Lines or United Airlines.
