Southwest Airlines warned Wednesday its full-year profit guidance faces jeopardy as rising jet-fuel costs threaten the carrier's forecast of at least $4 in adjusted earnings per share. The company indicated fuel prices must decrease or revenue performance improve to offset increased expenses, with executives noting updating guidance "would not be productive at this time" due to economic uncertainty.

Middle East conflict has tightened crude oil supplies, creating industry-wide pressure. United Airlines and Delta Air Lines both announced plans to reduce capacity in response to elevated fuel costs, signaling the broader challenge facing airlines as energy markets remain volatile.

The sector now faces margin compression that could force carriers to either absorb costs or pass them to consumers through higher fares. Southwest plans to update its projection as appropriate, though the path to maintaining earnings targets remains uncertain without relief from energy markets.