Southwest cuts planned 2026 capacity growth in half

Southwest Airlines has cut its planned 2026 capacity growth by about half as surging jet fuel prices pressure airline profit margins. The carrier signaled on September 17 that it may trim capacity further if fuel remains expensive.

According to USA Today, Southwest, American Airlines, and United Airlines are rethinking schedules to protect profits on marginal routes. Southwest CFO Tom Doxey noted that the airline slowed expansion plans, though autumn revenues were coming in ahead of expectations.

Across the industry, higher fares and steady travel demand have helped soften the impact of higher energy costs. American Airlines CFO Devon May estimated that fourth-quarter fuel costs were running about $1 per gallon above July assumptions, adding roughly $1 billion in expenses, while United removed planned December flights to prioritize profitability.