SOUTHWEST SEES $1B+ EBIT FROM ASSIGNED SEATING IN 2026 Southwest $LUV expects assigned seating and extra-legroom products to generate more than $1B of EBIT in 2026 and about $1.5B in 2027. Bag fees are expected to contribute another ~$1B of EBIT in 2026. Management says travel demand remains “very, very strong,” with September exceeding expectations. Southwest also sees room for further pricing gains, though it says more revenue recovery would be needed if fuel prices remain elevated.

SOUTHWEST AIRLINES CFO SAYS TRAVEL DEMAND REMAINS “VERY, VERY STRONG”, WITH SEPTEMBER DEMAND EXCEEDING EXPECTATIONS AND FURTHER ROOM FOR PRICING GAINS. ASSIGNED SEATING AND EXTRA-LEGROOM SEATS ARE EXPECTED TO GENERATE OVER $1 BILLION IN EBIT IN 2026 AND ABOUT $1.5 BILLION IN 2027, WHILE BAG FEES ARE EXPECTED TO ADD ABOUT $1 BILLION IN 2026.