Southwest Airlines

Southwest Airlines lowered its 2026 adjusted EPS guidance to $2.60–$2.85, down from a July range of $3.25–$4.25, citing higher fuel prices. The carrier reported third-quarter adjusted EPS of $0.66 versus $0.58 expected and revenue of $8.42 billion versus $8.25 billion expected. CEO Bob Jordan said demand remains strong and the airline’s earnings power is durable despite higher fuel costs as Southwest continues revenue-focused changes such as charging for seat assignments and checked bags. » More on cnbc.com

Southwest is replacing A-List and A-List Preferred on Jan. 1 with Silver, Gold and a new Platinum tier, raising some qualification thresholds and changing earning bonuses tied to Tier Qualifying Points (TQPs) and flights. Silver requires 35,000 TQPs or 25 flights with a 40% flight bonus, Gold 65,000 TQPs or 50 flights with a 60% bonus, and Platinum 140,000 TQPs or 100 flights with a 120% bonus and unlimited Companion Pass trips. The airline is also changing how Companion Pass is earned starting in 2027, introducing mid-tier rewards for customers near status milestones, expanding international partnerships and launching Icon airport lounges with Chase. » More on cnbc.com

Southwest announced plans to open its first four airport lounges in late 2027 at Austin, Baltimore, Honolulu and Nashville and will offer access via a new co-branded JPMorgan credit card launching in 2027. The move marks a further shift from Southwest's traditional no-frills model toward premium offerings, following earlier changes like assigned seating and bag fees. Management cites stronger recent results and growing business travel revenue, but the lounge strategy faces multi-year payback, rising fuel costs, activist pressure and tough competition from airlines with established premium ecosystems. » More on finance.yahoo.com