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Rising jet fuel costs challenge Southwest and American Airlines despite strong revenue growth.

Company Fundamentals
21 Oct 2026
24/7 Wall Street
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Neutral
Rising jet fuel costs challenge Southwest and American Airlines despite strong revenue growth.

Southwest and American Airlines face rising jet fuel costs as Brent crude tops $110 per barrel, impacting their earnings despite strong passenger demand and revenue growth near 18%. Southwest beat earnings expectations with adjusted EPS of $0.94, driven by growth in managed business and loyalty programs, while American Airlines reported a narrower operating margin due to an 83.3% increase in fuel expenses. Both airlines must prove their ability to manage fuel costs and maintain revenue growth in upcoming earnings reports to sustain investor confidence.

Southwest Airlines has a market cap of $19.40 billion and a dividend yield of 1.82%, while American Airlines' market cap stands at $8.02 billion as of Oct 21, 2026 19:02 WIB. On Pluang, Southwest's stock price is $39.58 with a slight 1-day decline of 0.18%, whereas American Airlines trades at $12.13, up 0.17% for the day. The volume for American Airlines is notably higher at 59,791,174 shares compared to Southwest's 8,108,763, reflecting differing investor activity levels amid the ongoing challenges of rising jet fuel costs.

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