Southwest Posts Record Revenue as Bag Fees and Assigned Seating Reshape Airline (travelerstoday.com)

Southwest Airlines reported third-quarter revenue of $8.4 billion, a period record, with net income of $270 million, five times the $54 million earned a year earlier. The results follow the completion of the airline's transformation: assigned seating since January 27, 2026, checked-bag fees of $35 for the first bag and $45 for the second since May 28, 2025, premium extra-legroom rows, and a new Rapid Rewards Platinum tier. Fuel at $3.92 per gallon exceeded guidance and Southwest cut full-year 2026 adjusted EPS guidance to $2.60 to $2.85 from $3.25 to $4.25, while planning its first four Icon Lounges for late 2027 in Austin, Baltimore, Honolulu, and Nashville.