In the flurry of airlines earnings season, we got results from Alaska, Southwest, and American and one takeaway was clear: The jet fuel problem isn’t going away.
Earlier this summer, there was hope that fuel prices would trend down, but they have become increasingly volatile. So much so that American lowered its 2026 guidance again: It now expects a range between a loss of 65 cents and a profit of 65 cents in adjusted diluted earnings per share.
Alaska has suspended guidance and isn’t sure whether it can see any pricing gains later this year. The Seattle-based carrier has been hit particularly hard by the fuel crisis, given its West Coast presence. Alaska paid $4.43 a gallon for fuel in the second quarter — American, Delta, and United each paid closer to $4.
Of the three, it seems like Southwest had the best second quarter. It reported an adjusted operating margin of 6.7%, making it the second-most profitable U.S. airline during the three month period so far, just behind Delta.
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