Southwest Airlines Q1 Miss Sparks 5% Drop

• Southwest Airlines reported Q1 2026 adjusted EPS $0.45, missing consensus $0.47, and revenue $7.2bn, below estimates.
• Higher fuel costs added $0.22 EPS headwind, with fuel price guidance $4.10‑$4.15 per gallon, pressuring outlook.
• Q2 adjusted EPS guided $0.35‑$0.65 (midpoint $0.50) and full‑year EPS $4.00 maintained, requiring lower fuel or stronger revenue.
• Operating cash flow rose 65% YoY to $1.4bn; $1.3bn returned to shareholders via buybacks and dividends; stock fell 4.9% after hours.