Southwests Q4 call: Wide-ranging changes will result in financial gains
On Jan. 27, Southwest Airlines began flying with assigned seats, thereby completing the final major step that its announced so far in the wide-ranging transformation of its business model.
Now, the airline expects to reap the rewards of that work to the tune of at least quadrupled profits on a per-share basis for 2026. Southwest is forecasting minimum earnings per share this year of $4, up the from the $0.93 earnings per share that it made last year. Both figures are adjusted for one one-time special items, such as labor-contract ratification bonuses and departure packages paid as part of its 15% corporate staff downsizing last spring.
During the companys earnings call on Jan. 29 to discuss Q4 and year-end earnings, CEO Bob Jordan and COO Andrew Watterson said the actual earnings per share figure for this year could be significantly higher, but the airline wants to gather another month or two of data on the revenue impact of new extra legroom and paid preferred seat assignments, especially for high yielding close-in bookings, before providing a top-end estimate to its outlook.


