The many changes Southwest Airlines has implemented over the past 18 months or so haven't dampened corporate demand for the carrier, according to airline executives on a Thursday morning earnings call. In fact, they may just have increased it, they said.
"Business customers are responding very, very well to the product options and changes, and I expect that to continue given we have full-fleet Starlink coming here by this time next year [and] we have our lounges opening," Southwest CEO Bob Jordan said. "Things that are important to all customers, but certainly important to our business customers, will continue to come online in a very rapid pace in 2027, and I expect that to continue to fuel the growth in managed business."
Third-quarter managed corporate revenue increased 29 percent year over year and "on essentially flat capacity, business passengers were up roughly 9 percent," Jordan said. "We're seeing strong continued demand, and managed business customers, that segment continues to outperform the overall business."
In addition, the quarter included 20 of the top 50 corporate booking days in company history, and two of the quarter's three months set records for unique managed business travelers flown, according to Southwest chief commercial officer Justin Jones.
"Year-over-year managed business passenger revenue growth improved sequentially in every quarter of 2026, and we've seen double-digit growth in both new and reactivated travelers, reflecting strong adoption of our enhanced offerings," he added. "We continue to see strength in the fourth quarter."
Southwest Q3 Metrics
Southwest third-quarter passenger revenue increased nearly 23 percent year over year to about $7.8 billion. Total revenue was up more than 21 percent to $8.4 billion. The carrier reported net income of $270 million compared with $54 million a year prior.
Capacity for the third quarter declined 0.4 percent year over year. Average fuel cost was $3.92 per gallon, up from $2.40 in Q3 2025.
Southwest projects fourth-quarter capacity to increase 3 percent to 4 percent year over year. The average fuel cost for Q4 is estimated at $4.55 per gallon. The carrier also plans for the full year to take 67 new aircraft deliveries and to retire 60 aircraft, according to CFO Tom Doxey.
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