Southwest (LUV) news that moved the stock

What happened

Southwest Airlines sharply cut its full-year 2026 adjusted earnings forecast on Wednesday, citing a surge in fuel costs. The carrier now expects adjusted EPS of $2.60 to $2.85, down from its prior $3.25–$4.25 guidance range issued in July; the new midpoint sits below Wall Street's $2.85 consensus (LSEG). Southwest also guided Q4 earnings below Street expectations. Q3 fuel cost came in at $3.92/gal vs. the airline's $3.70–3.75 assumption, adding $821 million in fuel expense year over year — a $1.08 headwind to adjusted EPS in the quarter alone — and it projects Q4 fuel at ~$4.55/gal. The miss on costs overshadowed an otherwise solid quarter: adjusted Q3 EPS of 66 cents beat the 58-cent consensus, revenue hit a record $8.4 billion, and average fares jumped nearly 27%.

What happened

United Airlines (UAL) reported third-quarter earnings of $2.54 per share on revenue of $18 billion for its third quarter, per Investor's Business Daily. Earnings missed Wall Street's target by 3 cents while sales were in line with estimates, as soaring fuel prices hurt profits during the quarter. The carrier's profit outlook for the current quarter came in at $1 per share at the midpoint, well below analyst targets of $1.64. Despite the miss and the soft guide, United shares got off to a poor start in early trade but then reversed and jumped nearly 4% as the price of oil receded during the session. The stock remained below its 50-day moving average.

What happened

Delta Air Lines reported Q3 results Friday morning that missed Wall Street estimates: EPS of $1.72 versus $1.77 expected, on revenue of $17.6 billion versus $17.7 billion expected, per IBD MarketSurge. The carrier also slashed its 2026 profit outlook, citing elevated fuel prices. Shares tumbled nearly 2% premarket. The report lands with crude still elevated after this week's U.S.-Iran shipping escalation, and with the 10-year Treasury yield back up to 5.26%.

What happened

The Wall Street Journal reported Saturday, Sept. 26 that Boeing had identified a previously undisclosed 737 MAX software glitch that could cause an automated navigation feature to fail during landing. Boeing confirmed it: "Last month, we informed all 737 operators about a software issue where pilots may not have access to automated flight guidance during a specific landing scenario," adding engineers are working on a permanent software update. On Monday, Sept. 28, the FAA said it was aware of a potential issue in the flight-computer software update and "will convene a Corrective Action Review Board (CARB) and will take immediate action if it identifies a safety concern"; FAA Administrator Bryan Bedford separately said the agency "will be delaying the [MAX] 10 until we're satisfied that we don't have an issue here." Boeing shares fell 6.9% Monday to ~$184.29–$184.39 (a 10-month low, biggest fall since last October), leading Dow decliners.