New York, Feb 11, 2026, 17:03 EST — After-hours
- Southwest Airlines (LUV) fell 4.9% in after-hours trade, with U.S. airline stocks broadly weaker.
- The carrier said it will roll out SpaceX’s Starlink onboard WiFi starting this summer, reaching 300+ aircraft by end-2026.
- Traders are watching Friday’s U.S. inflation data and fuel prices after crude settled higher.
Southwest Airlines Co (LUV) shares fell 4.9% to $51.43 in after-hours trading on Wednesday, a session when airline stocks took fresh heat and the carrier pushed out a late-day product update.
Airline shares can swing on simple inputs. Fuel moves fast, and the view on interest rates can flip in a morning.
Southwest is also trying to add more reasons to pay up, at the same time investors are demanding cleaner execution from carriers that still live with thin margins and the occasional operational jolt.
Delta Air Lines slipped 4.1%, American Airlines fell 5.0% and United Airlines dropped 2.1% in late trade. The pressure built as traders absorbed a stronger-than-expected U.S. jobs report that pushed Treasury yields higher and pared back hopes for near-term Federal Reserve rate cuts. (Reuters)
Oil prices also moved up. Brent settled at $69.40 a barrel and U.S. crude at $64.63, helped by worries over U.S.-Iran tensions even as U.S. crude inventories posted a sharp build. “The market continues to be supported by the tension between the U.S. and Iran,” said Andrew Lipow, president of Lipow Oil Associates. (Reuters)
After the closing bell, Southwest said the first Starlink-equipped aircraft will enter service this summer and the low-Earth-orbit system — satellites closer to Earth that can cut lag — should be available on more than 300 aircraft by the end of 2026. Tony Roach called seamless connectivity a customer expectation and said “Starlink delivers that at-home experience in the air,” while SpaceX executive Jason Fritch called it “the future of connected travel.” Southwest said it already offers free WiFi access to Rapid Rewards members on WiFi-enabled aircraft through T-Mobile. (Southwest Airlines Co.)
The carrier did not disclose financial terms. For investors, the pitch is simple enough: better onboard tech and more cabin “extras” can help keep customers loyal when fares get messy.
On Tuesday, Southwest said two directors appointed by activist investor Elliott Investment Management — David Cush and Gregg Saretsky — will step down effective Feb. 23, and the board will shrink to 11 members from 13. CEO Bob Jordan thanked the departing directors, saying “my sincere thanks go out to both David and Gregg.” (Reuters)
Southwest also sits in a sector where headlines can land without warning. The carrier was among airlines disrupted by a sudden airspace shutdown over El Paso, Texas, that the FAA lifted on Wednesday after an overnight halt that stranded travelers and disrupted flights. (Reuters)
The stock has been trading with a heavy overlay of “turnaround math” since Southwest laid out a more aggressive overhaul. Last month, the airline forecast 2026 adjusted profit of at least $4.00 a share, above analysts’ expectations, as it said its shift away from long-held practices gained traction. (Reuters)
But the risk case is not hard to sketch. A sustained climb in crude can filter quickly into jet fuel costs and squeeze margins, and any stumble in retrofits or new boarding and seating rules can trigger knock-on costs — and customer blowback — even if demand holds up.
Next up for traders is Friday’s U.S. consumer price index report, a date that can reset rate bets in a hurry. For Southwest, the next session will test whether the Starlink rollout news can draw attention back to product upgrades while the sector trades day-to-day on fuel and rates. (Reuters)
