SOUTHWEST AIRLINES CO (LUV)
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
Open SOUTHWEST AIRLINES CO in the interactive graph- Ticker
- LUV
- SEC CIK
- 0000092380
- Sector
- Industrials
- Industry
- Passenger Airlines
- Periods
- FY2025 Q1, FY2025 Q4, FY2026, FY2026 Q1, FY2026 Q2, FY2026 Q3, FY2027
- Headquarters
- Dallas, TX
- Employees
- 73,456
Key figures
- Revenue 7.25B USD
- NetIncome 227.00M USD
- DilutedEPS 0.45 USD/share
Reported figures
- BasicEPS -0.26 USD/share
- BasicEPS 0.45 USD/share
- BasicSharesOutstanding 498,000,000.00 shares
- BasicSharesOutstanding 584,000,000.00 shares
- CapitalExpenditure 527.00M USD
- CapitalExpenditure 630.00M USD
- CashAndEquivalents 3.23B USD
- CashAndEquivalents 3.30B USD
- CashAndEquivalents 3.33B USD
- DilutedEPS -0.13 USD/share
- DilutedEPS -0.26 USD/share
- DilutedEPS 0.45 USD/share
- EBITDA 2.92B USD
- FreeCashFlow 788.00M USD
- GrossProfit 728.00M USD
- InterestExpense 42.00M USD
- InterestExpense 46.00M USD
- InterestExpense 54.00M USD
- InterestIncome 23.00M USD
- InterestIncome 84.00M USD
- NetIncome -149.00M USD
- NetIncome -77.00M USD
- NetIncome 227.00M USD
- NetIncome 816.00M USD
- OperatingCashFlow 1.40B USD
- OperatingCashFlow 1.42B USD
- OperatingCashFlow 860.00M USD
- OperatingExpenses 6.65B USD
- OperatingExpenses 6.90B USD
- OperatingExpenses 6.92B USD
- OperatingIncome -128.00M USD
- OperatingIncome -223.00M USD
- OperatingIncome 330.00M USD
- OperatingMargin -2 percent
- OperatingMargin -3.5 percent
- OperatingMargin 4.6 percent
- OtherMetric -1.2 percent
- OtherMetric -2.3 percent
- OtherMetric 1.5 percent
- OtherMetric 11.2 percent
- and 26 more in the interactive graph
Guidance
- CapitalExpenditure guidance 3.00B–3.50B USD
- DilutedEPS guidance 0.35–0.65 USD/share
- DilutedEPS guidance 4.00 USD/share
- OtherMetric guidance 0–1 percent
- OtherMetric guidance 16.5–18.5 percent
- OtherMetric guidance 2 percent
- OtherMetric guidance 3.5–4 percent
- OtherMetric guidance 4.1–4.15 USD
Drivers
- Business transformation initiatives delivered meaningful margin expansion
- Demand for new product offerings drove record first quarter revenues and double-digit unit
- Fuel costs of $2.73 per gallon were above prior guidance of approximately $2.40, increasin
- Initiative contributions and broad-based demand strength across the network drove RASM inc
- Managed business revenue delivered its strongest March and quarterly performances in Compa
- Rapid Rewards engagement strengthened with enrollments up 37% and tier-status earners incr
- Removal of six seats from the Boeing 737-700 fleet to enable extra legroom seating expecte
- Significantly higher fuel costs represented a headwind to earnings despite strong revenue
- Strong Customer buy-up with approximately 60% of Customers upgrading from the base product
- Strong cost discipline with operating expenses increasing only 4.0% year-over-year
Risks
- Achieving full-year adjusted EPS guidance of $4.00 would require lower fuel prices and/or
- Actions of competitors including pricing, scheduling, capacity, and network decisions, and
- Consumer uncertainties with respect to trade policies or government shutdowns including th
- Dependence on The Boeing Company and Boeing suppliers with respect to aircraft deliveries,
- Dependence on the Federal Aviation Administration with respect to certification of the Boe
- External environment remains uncertain despite strong momentum
- Impact of fuel price changes, fuel price volatility, and fuel availability on business pla
- Impact of geopolitical conflicts, fears or actual outbreaks of diseases, extreme or severe
- Ongoing macroeconomic uncertainty makes updating full-year adjusted EPS guidance unproduct
Corporate events
- Announced suspension of operations at Chicago O'Hare and Washington Dulles in June and rea
- Distributed $93 million in dividends during first quarter 2026
- Repurchased $1.25 billion in shares during first quarter 2026
Quotes
- “First quarter 2026 marked a turning point for Southwest, as our broad set of com…”
- “Our Customers have embraced and value our new products, and that is reflected in…”