New York, Feb 11, 2026, 17:03 EST — After-hours
- Southwest Airlines (LUV) dropped 4.9% in after-hours trading as U.S. airline stocks saw a broad decline.
- The carrier announced it plans to launch SpaceX’s Starlink onboard WiFi this summer, aiming to equip over 300 aircraft by the end of 2026.
- With crude prices up, traders are eyeing Friday’s U.S. inflation figures and fuel costs closely.
Shares of Southwest Airlines Co (LUV) dropped 4.9% to $51.43 in after-hours trading Wednesday, as airline stocks faced renewed pressure and the carrier released a late-day product update.
Airline stocks react quickly to even minor shifts. Fuel prices change rapidly, and sentiment on interest rates can turn within hours.
Southwest is pushing for more reasons to justify higher fares, even as investors expect carriers to tighten operations amid thin margins and occasional disruptions.
Delta Air Lines dropped 4.1%, American Airlines slid 5.0%, and United Airlines declined 2.1% in late trading. The sell-off followed a stronger-than-expected U.S. jobs report, which lifted Treasury yields and dampened expectations for imminent Federal Reserve rate cuts. 1
Oil prices climbed again. Brent closed at $69.40 a barrel, while U.S. crude ended at $64.63. The rise came despite a notable increase in U.S. crude inventories, driven largely by concerns over U.S.-Iran tensions. “The market continues to be supported by the tension between the U.S. and Iran,” said Andrew Lipow, president of Lipow Oil Associates. 2
After the closing bell, Southwest announced that its first Starlink-equipped plane will launch this summer. The low-Earth-orbit satellite system—which reduces lag by orbiting closer to Earth—is expected to be available on over 300 aircraft by the end of 2026. Tony Roach highlighted seamless connectivity as a key customer demand, stating that “Starlink delivers that at-home experience in the air.” SpaceX exec Jason Fritch described it as “the future of connected travel.” Southwest also noted it currently provides free WiFi to Rapid Rewards members on WiFi-enabled planes via T-Mobile. 3
The carrier kept financial details under wraps. The message to investors is straightforward: improved onboard technology and added cabin “extras” could be key to retaining customers when ticket prices get complicated.
Southwest announced Tuesday that two directors appointed by activist investor Elliott Investment Management, David Cush and Gregg Saretsky, will resign effective Feb. 23. This will reduce the board from 13 members to 11. CEO Bob Jordan expressed his gratitude to the departing directors, saying, “my sincere thanks go out to both David and Gregg.” 4
Southwest operates in a sector where sudden headlines are par for the course. The airline was caught up in an abrupt airspace shutdown over El Paso, Texas, causing stranded passengers and disrupted flights. The FAA lifted the halt Wednesday after it had lasted overnight. 5
Southwest’s stock has been weighed down by what some call “turnaround math” ever since the airline announced a more ambitious restructuring plan. In its latest update last month, Southwest projected an adjusted profit of at least $4.00 per share for 2026, beating analysts’ estimates. The company credited this to gaining momentum as it moves away from long-standing practices. 6
The risk scenario is straightforward. A steady rise in crude prices can quickly push up jet fuel costs, squeezing profit margins. Plus, any hiccup in retrofitting or implementing new boarding and seating rules could spark additional expenses — and upset customers — even if demand remains strong.
Traders are now eyeing Friday’s U.S. consumer price index report, which has the potential to quickly shake up rate expectations. For Southwest, the upcoming session will reveal if the latest Starlink rollout news can refocus attention on product upgrades amid a market that’s currently driven by daily shifts in fuel prices and interest rates. 7
