Southwest Airlines trimmed its full-year 2026 earnings guidance on Wednesday, joining a growing list of U.S. carriers resetting profit expectations as jet-fuel prices rise. The Dallas-based airline nevertheless reported record third-quarter revenue of $8.42 billion, up 21.2% year over year and above the $8.25 billion consensus estimate. Adjusted earnings reached 66 cents per share, beating the 58-cent analyst estimate. Unit revenue, passenger revenue and passenger yields set company records, while 20 of Southwest’s 50 all-time top managed business booking days occurred during the quarter. Operating margins widened to 4.5% despite an $821 million annual increase in fuel costs, which Southwest said created an approximately $1.08-per-share headwind. The airline attributed the stronger results to higher fares, checked-baggage fees and other commercial initiatives. An earlier report had described a reduction in full-year 2025 adjusted earnings guidance to $2.60-$2.85 per share from $3.25-$4.25; the latest update identifies the guidance reset as applying to 2026. Southwest expects fourth-quarter earnings of 55 cents to 80 cents per share, below the 82-cent analyst estimate, and fuel costs of $4.55 per gallon. Delta Air Lines has warned that capacity growth may need to slow, while United Airlines expects elevated fuel prices through 2027. Southwest shares rose about 1% in extended trading, compared with an earlier reported 1.1% gain to $40.30.