undamentalytics Newsletter
Sign in

Southwest Airlines (LUV) stock

Add to watchlist

Add holding +

NYSE: LUV NYSE Passenger Airlines Next results ~January 27, 2027

B Fundamentals grade

Southwest Airlines is a US-listed company in the passenger airlines industry. Its financial year ends in December.

Stock price today

Loading chart…

Third-party market data · may be delayed

Model estimate per share

~$35

Valuation models combined (5)

Base case. Range ~$13–$71. Weighted average of 5 models (growth cash-flow model, forward price-to-earnings vs peers, residual income, justified price-to-book, revenue-to-maturity model), the growth cash-flow model counting double.

Price vs value

No Buy/Hold/Sell rating is issued: valued with our growth model, which doesn't carry a Buy/Hold/Sell rating yet.

Southwest Airlines valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

Value diary

Our note on each quarter Southwest Airlines files

10-Q filed October 22: Southwest Airlines

Model value +14.9%

Revenue for the twelve months to September 2026 reached $31.5bn, up 14.5% on a year earlier. That marks an acceleration from the 9.5% recorded a quarter earlier. Operating margin widened to 4.4% from 1.1%, though free-cash-flow margin held at -1.4%. Share count also matters here: the diluted figure is down 13.1% on a year earlier, which lifts the claim of each remaining share. On the back of these moves, the fundamentals grade shifts from C+ to B. Our model value rises from $65.41 to $75.14 a share, against a current share price of $42.03.

Source: 10-Q filed October 22, 2026 on SEC EDGAR · Financials · Valuation

Earlier notes (1)

Where Southwest Airlines stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $30.1bn, up 9.5% on a year earlier, faster than 4.7% a quarter earlier. Free-cash-flow margin held at -1.5%. Operating margin widened to 3.5% from 1.2%. The diluted share count is down 14.4% on a year earlier, which lifts each remaining share. Against its peers on growth, profitability, cash generation and balance sheet, it grades C+. It passes 1 of our 2 financial-health checks. Our valuation models combined value is $23.99 a share, against a share price of $39.71.

10-Q on SEC EDGAR

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~January 27, 2027 (estimated)

Southwest Airlines's trailing-twelve-month revenue grew 14.5% year on year, with a free-cash-flow margin of -1.4%. Where it stands out: change in share count of -13.1% ranks 1 of 10 passenger airlines companies we cover.

Current signal Free cash flow diverging from earnings: TTM free cash flow fell 25.4% while net income grew 177.8%: a 203pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Growth speeding up. The growth rate is 5.0 points higher than a quarter earlier.
  • Margins widening. Operating margin is up 3.2 points on a year ago.
  • Shrinking share count. Diluted shares fell 13.1% in a year, so each share owns more of the business.

Things to watch

  • Burning cash. Free cash flow was -1.4% of revenue over the last 12 months.
  • Volatile shares. Over the past year the shares showed annualised volatility of 44% and a beta of 1.6 against the S&P 500.
  • Weak cash conversion. Free cash flow was -43% of net income over the last 12 months.
  • Estimates being cut. Analysts' consensus for next year's earnings per share has fallen 16.6% over 90 days.

Latest results: FY2026 Q3

Filed October 22, 2026
Earnings per share
$0.66 against an average estimate of $0.58: beat by 14.2%
Revenue
$8.42bn, up 21.2% on a year earlier
Share reaction
+6.0% in the first session after the results on October 21, 2026, against -0.7% for the S&P 500
Guidance given
adjusted EPS $0.55 to $0.8 (4Q 2026); ASMs, year-over-year growth 3% to 4% (4Q 2026)
Next report
October 21, 2026; average EPS estimate $0.70

Southwest Airlines' figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day+3.6%
  • 1 week+2.6%
  • 1 month+3.5%
  • This year+7.8%
  • 1 year+47.7%
  • 5 years-3.2%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

Loading chart…

Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$31.5B
Operating margin
4.4%
Net margin
3.3%
EPS (TTM, diluted)
$2.03

Growth

Revenue growth
+14.5%
Change in growth rate
+5.0 pts
Share count change
−13.1%

Cash

Free cash flow (TTM)
-$449M
FCF margin
-1.4%

Earnings

Last results
October 21, 2026
Next results (est.)
January 27, 2027

News & updates

Updated November 3, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Agreement
  2. Financing

    Southwest Airlines prices $1,250,000,000 note offering

    Southwest Airlines said it priced a $1,250,000,000 senior note offering on 26 October 2026. The deal includes $600,000,000 of 5.750% Notes due 2029 and $650,000,000 of 6.000% Notes due 2031. The company expects to use the proceeds for general corporate purposes, including repaying $300 million of existing notes.

    Company releaseRead source ↗
  3. Our research
  4. Results
  5. Guidance
  6. Product
  7. Product

    Southwest Airlines adds booking plugin to ChatGPT

    Southwest Airlines said it launched a plugin in ChatGPT on 6 October 2026. The company stated the feature allows users to discover and shop for flights within the platform. Southwest noted the project is part of a phased approach with OpenAI and Amazon Web Services.

    Company releaseRead source ↗
  8. Announcement

    Southwest launches 'Enter Airplane Mode' campaign

    Southwest Airlines said it launched a new brand campaign on 5 October 2026. The initiative includes a digital activation where customers can convert notification screenshots into Rapid Rewards points. The company stated that more than 185 million points are available in total.

    Company releaseRead source ↗
  9. Results
  10. Announcement
  11. Announcement
  12. Agreement
  13. Leadership
  14. Leadership
  15. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Southwest Airlines valuation models and calculator

Fundamentalytics rating

model v1.6 · 2026-11-03

Not rated: valued with our growth model, which doesn't carry a Buy/Hold/Sell rating yet.

Valuation models

We value Southwest Airlines as an operating company, with every model that fits that kind of business. Cost of equity 10.1%: the 10-year Treasury yield (4.9%) plus a beta of 1.15 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Growth cash-flow model Revenue for this year and next from analysts' consensus, then growth fading to 2.5%; the operating margin moving to profitable peers'; investment needed per dollar of growth from peers; reduced by a failure probability. For young or fast-growing companies. The starting margin is normalized to between -100% and 60%; net margin is a proxy when operating income is not tagged. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$34 ~$24–$42 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$43 ~$35–$51 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. ~$13 ~$9.8–$19 Included
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. ~$13 ~$11–$15 Included
Forward price-to-sales vs peers Next year's consensus sales per share times peers' typical forward price-to-sales; only when earnings are negative. Uses analysts' consensus estimates (third-party data), not our forecasts. — Does not apply: earnings are positive: price-to-earnings is the better measure
Revenue-to-maturity model Revenue grown to maturity with the cash margin moving to the industry's; for companies not yet profitable. ~$71 ~$55–$89 Included
Combined value Weighted average of the models that apply: the primary model (growth cash-flow model) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$35 ~$13–$71 5 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Southwest Airlines with Passenger Airlines in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

Valuation multiples over time Market data may be delayed

At fiscal year end 20152016201720182019202020212022202320242025Now
Share price$37.78$44.12$58.42$41.94$49.37$42.79$39.33$30.91$27.26$32.47$40.78$43.96
Market value$25.3bn$27.9bn$35.2bn$24.1bn$26.6bn$24.2bn$24.0bn$19.8bn$17.4bn$20.9bn$22.8bn$22.8bn
+ Net debt (− = net cash)$1.6bn$1.7bn$2.2bn$1.5bn$130m−$682m−$1.7bn−$1.4bn−$1.3bn−$805m$1.7bn$2.3bn
Enterprise value$26.9bn$29.7bn$37.4bn$25.6bn$26.7bn$23.5bn$22.2bn$18.5bn$16.2bn$20.1bn$24.5bn$25.0bn
Multiples
Price / sales 1.3x1.4x1.7x1.1x1.2x2.7x1.5x0.8x0.7x0.8x0.8x0.7x
Price / earnings 11.6x12.8x10.5x9.8x11.6x—24.5x36.8x37.5x44.9x51.6x21.6x
Price / free cash flow 21.1x12.4x19.5x8.1x9.0x—13.2x—————
EV / EBITDA 5.2x6.3x8.1x5.8x6.4x—7.4x7.8x9.3x10.1x12.3x8.5x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

33 /100

Weak moat

How hard Southwest Airlines's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 1 / 20

    Net income has been a median 2.4% of total assets over 10 years.

  • Durability 0 / 20

    Operating margin has been a median 3.6%; its worst year was -15.5%.

  • Cash conversion 6 / 20

    Free cash flow was positive in 5 of 10 years, at a median 0.9% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 14.5% over five years; stock-based pay has been a median 0.1% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $2.74 +195% $33.5bn +20%
Next $4.12 +50% $35.7bn +7%

Next year's EPS estimate has moved −16.6% in 90 days, across 24 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is −19.1% on 90 days ago. In the last 30 days, 0 analysts raised Southwest Airlines's forecast and 18 cut it.

Consensus EPS forecast Southwest Airlines, last 90 days
$2.00 $3.00 $4.00 $5.00 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $3.39 Current fiscal year, 60 days ago: $3.38 Current fiscal year, 30 days ago: $3.21 Current fiscal year, 7 days ago: $2.81 Current fiscal year, Now: $2.74 $2.74 Next fiscal year, 90 days ago: $4.94 Next fiscal year, 60 days ago: $4.86 Next fiscal year, 30 days ago: $4.71 Next fiscal year, 7 days ago: $4.29 Next fiscal year, Now: $4.12 $4.12

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $3.39$4.94
60 days ago $3.38$4.86
30 days ago $3.21$4.71
7 days ago $2.81$4.29
Now $2.74$4.12

Earnings against estimates

Quarter toEstimateActualSurprise
Sept 2026 $0.58 $0.66 +14.2%
Jun 2026 $0.52 $0.94 +80.2%
Mar 2026 $0.47 $0.45 −5.0%
Dec 2025 $0.57 $0.58 +1.8%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, October 21, 2026
  • Adjusted EPS 2026 $2.60 to $2.85 Non-GAAP Lowered vs 3.25 to 4.25
    “Adjusted EPS 1,2 $2.60 to $2.85” source
  • Adjusted EPS 4Q 2026 $0.55 to $0.80 Non-GAAP
    “Adjusted EPS 1,2 $0.55 to $0.80” source
  • full-year capacity growth 2026 about 1.2% growth Lowered
    “Entered 2026 with a disciplined capacity plan and now expect full-year growth of approximately 1.2%, versus last updated guidance of approximately 1.5%” source
  • net capital spending 2026 $2.5bn to $2.75bn Lowered vs 3bn to 3.5bn
    “Expect 2026 net capital spending 4 between $2.5 billion and $2.75 billion” source
  • Boeing 737-8 and 737-7 aircraft deliveries 2026 about 67
    “Expect a total of 67 Boeing 737-8 and 737-7 aircraft deliveries and plan to retire approximately 60 aircraft in 2026” source
  • aircraft retirements 2026 about 60
    “Expect a total of 67 Boeing 737-8 and 737-7 aircraft deliveries and plan to retire approximately 60 aircraft in 2026” source
Show 4 more items
  • ASMs, year-over-year 4Q 2026 3% growth to 4% growth
    “ASMs (a), year-over-year 3% to 4%” source
  • RASM, year-over-year Fourth quarter 2026 19% growth to 21% growth
    “Fourth quarter 2026 RASM is expected to increase between 19% and 21% year-over-year” source
  • CASM-X, year-over-year Fourth quarter 2026 4% growth to 4.5% growth Non-GAAP
    “Fourth quarter 2026 CASM-X 1,2 is expected to increase between 4.0% and 4.5% year-over-year, which includes an expected 1.0 point headwind from the removal of six seats from the Boeing 737-700 fleet to enable extra legroom seating” source
  • fuel cost per gallon Fourth quarter 2026 about 4.55
    “Fourth quarter 2026 fuel cost per gallon is assumed to be approximately $4.55 3 based on the forward curve as of October 15, 2026” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

Analyst recommendations

25 analysts, Oct 2026
Buy1144%
Hold1144%
Sell312%

Monthly trend

  1. Oct 20264711225
  2. Sep 20264711225
  3. Aug 202647102225
  4. Jul 20264792325

Counts of recommendations published by analysts covering Southwest Airlines, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
6.3%
of tradable shares
Days to cover
3.57
at average volume
Short interest, 1 month
+6%
to October 15, 2026
Held by institutions
95%
of shares
Held by insiders
1.0%
of shares
Employees
73,092
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months +47.7%

$29.77 on October 31, 2025 to $43.96

ThenNowEffect
Revenue (last 12 months) $27.5bn $30.1bn +9.5%
Net margin 1.4% 2.8% +95.1%
P/E multiple 46.6x 27.6x −40.8%
Share count 614m 526m +16.8%

Biggest factor: net margin.

Last 3 years +97.7%

$22.23 on November 3, 2023 to $43.96

ThenNowEffect
Revenue (last 12 months) $25.1bn $30.1bn +19.6%
Net margin 2.3% 2.8% +20.4%
P/E multiple 24.6x 27.6x +12.1%
Share count 644m 526m +22.4%

Biggest factor: share count.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
LUV−8%−21%−12%+19%+26%+8%
Industry peers (median)−2%−29%−12%+21%−17%−21%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
LUV33%50%33%75%50%73%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
LUV−39%−36%−43%−32%−31%−34%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 2, 2015: 65% from January 2, 2018 to October 31, 2023. Getting back needed a 184% gain, and the shares have not yet recovered.

Price behaviour

52-week range
$29.15 – $54.07
From 52-week high
−18.7%
vs 50-day average
+7.8%
vs 200-day average
+1.8%
Volatility (1 year)
44%
Beta vs S&P 500
1.61

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
5 up, 7 down
typical move ±7.1%
After a week
4 up, 8 down
typical move ±9.9%
After a month
5 up, 6 down
typical move ±11.8%
Results releasedNext dayS&P 500 next day5 days21 days
October 21, 2026 +6.0% −0.7% +9.6% —
July 22, 2026 −8.2% −1.3% −8.9% −18.1%
April 22, 2026 −7.7% +0.6% −9.0% −0.3%
January 28, 2026 +17.3% −0.2% +27.2% +19.2%
October 22, 2025 −8.7% +0.1% −11.6% −10.2%
July 23, 2025 −10.5% +0.9% −17.4% −16.4%
April 23, 2025 +6.9% +3.7% +13.0% +26.1%
January 30, 2025 −3.0% 0.0% −1.8% −3.3%
October 24, 2024 −4.2% +0.2% −0.5% +4.0%
July 25, 2024 +2.3% +0.6% −0.9% +5.9%
April 25, 2024 −7.7% +0.6% −9.9% −8.4%
February 6, 2024 +3.3% +1.1% +9.3% +17.7%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Southwest Airlines in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Southwest Airlines
$26B $28B $30B $32B FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue (TTM), FY23 Q4: $26.1B Revenue (TTM), FY24 Q1: $26.7B Revenue (TTM), FY24 Q2: $27B Revenue (TTM), FY24 Q3: $27.4B Revenue (TTM), FY24 Q4: $27.5B Revenue (TTM), FY25 Q1: $27.6B Revenue (TTM), FY25 Q2: $27.5B Revenue (TTM), FY25 Q3: $27.6B Revenue (TTM), FY25 Q4: $28.1B Revenue (TTM), FY26 Q1: $28.9B Revenue (TTM), FY26 Q2: $30.1B Revenue (TTM), FY26 Q3: $31.5B $31.5B

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period Revenue (TTM)
FY23 Q4 $26.1B
FY24 Q1 $26.7B
FY24 Q2 $27B
FY24 Q3 $27.4B
FY24 Q4 $27.5B
FY25 Q1 $27.6B
FY25 Q2 $27.5B
FY25 Q3 $27.6B
FY25 Q4 $28.1B
FY26 Q1 $28.9B
FY26 Q2 $30.1B
FY26 Q3 $31.5B
Revenue growth, TTM YoY Southwest Airlines
0% 5% 10% 15% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue growth, TTM YoY, FY23 Q4: 9.6% Revenue growth, TTM YoY, FY24 Q1: 7.6% Revenue growth, TTM YoY, FY24 Q2: 7.5% Revenue growth, TTM YoY, FY24 Q3: 7.6% Revenue growth, TTM YoY, FY24 Q4: 5.3% Revenue growth, TTM YoY, FY25 Q1: 3.2% Revenue growth, TTM YoY, FY25 Q2: 1.6% Revenue growth, TTM YoY, FY25 Q3: 0.6% Revenue growth, TTM YoY, FY25 Q4: 2.1% Revenue growth, TTM YoY, FY26 Q1: 4.7% Revenue growth, TTM YoY, FY26 Q2: 9.5% Revenue growth, TTM YoY, FY26 Q3: 14.5% 14.5%

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q4 9.6%
FY24 Q1 7.6%
FY24 Q2 7.5%
FY24 Q3 7.6%
FY24 Q4 5.3%
FY25 Q1 3.2%
FY25 Q2 1.6%
FY25 Q3 0.6%
FY25 Q4 2.1%
FY26 Q1 4.7%
FY26 Q2 9.5%
FY26 Q3 14.5%
Operating margin (TTM) Southwest Airlines
-2% 0% 2% 4% 6% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Operating margin (TTM), FY23 Q4: 0.9% Operating margin (TTM), FY24 Q1: 0.4% Operating margin (TTM), FY24 Q2: -1.0% Operating margin (TTM), FY24 Q3: -1.3% Operating margin (TTM), FY24 Q4: 1.2% Operating margin (TTM), FY25 Q1: 1.8% Operating margin (TTM), FY25 Q2: 1.2% Operating margin (TTM), FY25 Q3: 1.1% Operating margin (TTM), FY25 Q4: 1.5% Operating margin (TTM), FY26 Q1: 3.4% Operating margin (TTM), FY26 Q2: 3.5% Operating margin (TTM), FY26 Q3: 4.4% 4.4%

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period Operating margin (TTM)
FY23 Q4 0.9%
FY24 Q1 0.4%
FY24 Q2 -1.0%
FY24 Q3 -1.3%
FY24 Q4 1.2%
FY25 Q1 1.8%
FY25 Q2 1.2%
FY25 Q3 1.1%
FY25 Q4 1.5%
FY26 Q1 3.4%
FY26 Q2 3.5%
FY26 Q3 4.4%
FCF margin (TTM) Southwest Airlines
-8% -6% -4% -2% 0% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 FCF margin (TTM), FY23 Q4: -1.4% FCF margin (TTM), FY24 Q1: -2.6% FCF margin (TTM), FY24 Q2: -6.3% FCF margin (TTM), FY24 Q3: -6.9% FCF margin (TTM), FY24 Q4: -5.8% FCF margin (TTM), FY25 Q1: -2.1% FCF margin (TTM), FY25 Q2: -1.1% FCF margin (TTM), FY25 Q3: -1.3% FCF margin (TTM), FY25 Q4: -3.0% FCF margin (TTM), FY26 Q1: -1.3% FCF margin (TTM), FY26 Q2: -1.3% FCF margin (TTM), FY26 Q3: -1.4% -1.4%

Source: SEC EDGAR filings. Retrieved October 23, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q4 -1.4%
FY24 Q1 -2.6%
FY24 Q2 -6.3%
FY24 Q3 -6.9%
FY24 Q4 -5.8%
FY25 Q1 -2.1%
FY25 Q2 -1.1%
FY25 Q3 -1.3%
FY25 Q4 -3.0%
FY26 Q1 -1.3%
FY26 Q2 -1.3%
FY26 Q3 -1.4%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-K/A, 10-Q, 10-Q/A. Generated November 3, 2026. Definitions in our methodology.

Where the money goes

FY2025, from the 10-K

Each dollar Southwest Airlines took in during FY2025, followed through to profit: what it cost to make, what went on running the business, and what was left after tax.

  1. Revenue $28.1B
  2. Other operating costs $27.6B · 98.5%
  3. Operating income $428M · 1.5%
  4. Net income $441M · 1.6%

Shares of revenue. Source: Southwest Airlines's 10-K for FY2025, as filed with the SEC. "Other" lines are what the reported lines leave unexplained.

Financial statements

US$ billions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2009 Dec 2009 2010 Dec 2010 2011 Dec 2011 2012 Dec 2012 2013 Dec 2013 2014 Dec 2014 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Sept 2026
Income
Revenue 10.4 12.1 15.7 17.1 17.7 18.6 19.8 20.4 21.2 22.0 22.4 9.0 15.8 23.8 26.1 27.5 28.1 31.5
EBITDA 0.9 1.6 1.4 1.5 2.1 3.2 5.1 4.7 4.6 4.4 4.2 −2.6 3.0 2.4 1.7 2.0 2.0 3.0
Operating income 0.3 1.0 0.7 0.6 1.3 2.2 4.1 3.5 3.4 3.2 3.0 −3.8 1.7 1.0 0.2 0.3 0.4 1.4
Net income 0.1 0.5 0.2 0.4 0.8 1.1 2.2 2.2 3.4 2.5 2.3 −3.1 1.0 0.5 0.5 0.5 0.4 1.1
Diluted EPS $0.13 $0.61 $0.23 $0.56 $1.05 $1.64 $3.27 $3.45 $5.57 $4.29 $4.27 −$5.44 $1.61 $0.87 $0.76 $0.76 $0.79 $2.03
Growth (year on year)
Revenue −6.1% +16.9% +29.4% +9.1% +3.6% +5.1% +6.5% +3.1% +3.7% +3.8% +2.1% −59.7% +74.5% +50.8% +9.6% +5.3% +2.1% +14.5%
EBITDA −16.2% +84.1% −12.9% +4.2% +46.2% +47.5% +62.2% −7.6% −2.5% −4.7% −5.2% −161.3% — −20.9% −26.3% +13.3% +0.5% +54.5%
Operating income −41.6% +277.1% −29.9% −10.1% +105.1% +74.1% +85.0% −14.4% −3.3% −5.9% −7.8% −229.0% — −40.9% −78.0% — — —
Net income — — −61.2% — +79.1% +50.7% +92.0% +0.1% +53.8% −26.6% −6.7% −233.7% — −44.8% −13.7% — — —
Diluted EPS — — −62.3% — +87.5% +56.2% +99.4% +5.5% +61.4% −23.0% −0.5% −227.4% — −46.0% −12.6% — — —
Margins
EBITDA margin 8.5% 13.4% 9.0% 8.6% 12.1% 17.0% 25.9% 23.2% 21.8% 20.1% 18.6% −28.3% 19.0% 9.9% 6.7% 7.2% 7.1% 9.4%
Operating margin 2.5% 8.2% 4.4% 3.6% 7.2% 12.0% 20.8% 17.2% 16.1% 14.6% 13.2% −42.2% 10.9% 4.3% 0.9% 1.2% 1.5% 4.4%
Net margin 1.0% 3.8% 1.1% 2.5% 4.3% 6.1% 11.0% 10.7% 15.9% 11.2% 10.3% −34.0% 6.2% 2.3% 1.8% 1.7% 1.6% 3.3%
Free-cash-flow margin 3.9% 8.8% 2.5% 4.2% 5.8% 6.2% 6.0% 11.0% 8.5% 13.5% 13.2% −18.1% 11.5% −0.6% −1.4% −5.8% −3.0% −1.4%
Cash flow
Cash from operations 1.0 1.6 1.4 2.1 2.5 2.9 3.2 4.3 3.9 4.9 4.0 −1.1 2.3 3.8 3.2 0.5 1.8 2.8
Capital spending 0.6 0.5 1.0 1.3 1.4 1.7 2.0 2.0 2.1 1.9 1.0 0.5 0.5 3.9 3.5 2.1 2.7 3.2
Free cash flow 0.4 1.1 0.4 0.7 1.0 1.2 1.2 2.3 1.8 3.0 3.0 −1.6 1.8 −0.1 −0.4 −1.6 −0.8 −0.4
Stock-based pay 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.0 0.1 —
Free cash flow after stock pay 0.4 1.1 0.4 0.7 1.0 1.1 1.2 2.2 1.8 2.9 2.9 −1.7 1.8 −0.2 −0.4 −1.6 −0.9 —
Balance sheet
Cash 1.1 1.3 0.8 1.1 1.4 1.3 1.6 1.7 1.5 1.9 2.5 11.1 12.5 9.5 9.3 7.5 3.2 3.6
Total debt 3.6 3.4 3.8 3.2 2.8 2.7 3.2 3.4 3.7 3.4 2.7 10.4 10.8 8.1 8.0 6.7 4.9 5.9
Net debt (negative = net cash) 2.4 2.1 2.9 2.1 1.5 1.4 1.6 1.7 2.2 1.5 0.1 −0.7 −1.7 −1.4 −1.3 −0.8 1.7 2.3
Diluted shares 741m 747m 775m 757m 718m 696m 669m 633m 603m 574m 539m 565m 609m 642m 640m 643m 558m 518m
Returned to shareholders
Dividends 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.2 0.0 0.0 0.4 0.4 0.4 0.4
Buybacks 0.0 0.0 0.2 0.4 0.5 1.0 1.2 1.8 1.6 2.0 2.0 0.5 0.0 0.0 0.0 0.3 2.6 1.3
Total returned 0.0 0.0 0.2 0.4 0.6 1.1 1.4 2.0 1.9 2.3 2.4 0.6 0.0 0.0 0.4 0.7 2.9 1.7

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

3 of 6 checks passed · September 30, 2026
What it owns · $30.5bn
Short-term assets $6.5bnLonger-term assets $24.0bn
What it owes, and who funded it · $21.1bn
Short-term liabilities $13.7bnShareholders' equity $7.3bn
  • Short-term assets cover short-term liabilities $6.5bn of assets due within a year against $13.7bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $3.6bn of cash against $3.7bn of debt.
  • Debt below 40% of shareholders' equity Debt is 51% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 99% to 51% over five years.
  • A year's operating cash flow covers at least 20% of debt $2.8bn of operating cash flow against $3.7bn of debt.
  • Operating profit covers interest at least five times over Operating income of $1.4bn against $235m of interest.

From Southwest Airlines's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2026 Q3 TTM
Buybacks (TTM)
$1.3B
Dividends (TTM)
$357M
Returned to shareholders
-369%
of free cash flow
Buybacks, last 3 fiscal years
$2.8B
Diluted share count
−13.1%
year over year
Total shareholder yield
7.6%
dividends 1.6% + buybacks 6.0% of market value
Dividend payout ratio
34%
of net income paid out

Competitors: side by side with peers

Closest by revenue in passenger airlines
Last 12 months unless stated LUV RYAAY AAL UAL ALK DAL Median
Revenue, last 12 months $31.5bn $18.0bn $61.0bn $65.6bn $14.8bn $71.8bn $5.0bn
Revenue growth, last 12 months 14.5% 20.3% 12.3% 12.3% 9.8% 14.1% 11.1%
Revenue growth, 3-year average 7.4% — 4.8% 7.7% 12.6% 7.8% 7.6%
Revenue growth, latest quarter 21.2% — 19.3% 17.4% 9.7% 21.1% 20.2%
Operating margin 4.4% 15.3% 1.6% 7.5% −1.5% 7.4% 0.0%
Operating margin, 3-year average 1.4% 10.5% 3.2% 8.0% 2.0% 8.8% −1.6%
Net margin 3.3% 14.0% −0.8% 5.5% −1.2% 4.6% 0.1%
Cash from operations / revenue 8.7% 23.8% 7.0% 12.4% 6.9% 11.1% 7.0%
Free-cash-flow margin −1.4% 11.6% −0.1% 1.7% 5.0% 7.5% −0.1%
Free-cash-flow margin, 3-year average −3.2% 12.7% 0.1% 2.9% 4.8% 4.8% −3.2%
Stock pay / revenue 0.1% 0.1% — 0.3% 0.5% — 0.4%
Change in share count −13.1% −3.9% −6.4% −1.3% −8.4% 0.7% −1.3%

Median of all 16 companies we cover in passenger airlines. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

16 passenger airlines companies
Measure Company Peer median Rank
Revenue growth Growth 14.5% 12.2% 4 of 16
Change in growth rate Growth +5.0pp +4.8pp 7 of 16
Operating margin Profitability 4.4% 1.6% 7 of 16
Net margin Profitability 3.3% 0.9% 7 of 16
Free-cash-flow margin Cash generation -1.4% 0.0% 10 of 16
Long-term debt as % of assets Balance sheet 12.2% 26.9% 5 of 14
Change in share count Balance sheet -13.1% -1.3% 1 of 10

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to December 31, 2025
Products and services
Line of business Revenue YoY
Passenger $25.5B ▲ 2.2%
Passenger Revenue Non Loyalty $20.4B ▼ 0.1%
Passenger Loyalty Air Transportation $3.3B ▼ 6.5%
Other Revenue $2.6B ▲ 18.2%
Other $2.4B ▲ 1.2%
Passenger Ancillary Sold Separately $1.8B ▲ 78.3%
Cargo and Freight $171M ▼ 2.3%

These categories overlap or exclude eliminations, so shares aren't shown.

Geography
Region Revenue Share YoY
North America $27.3B 97.3% ▲ 2.2%
Latin America $756M 2.7% ▼ 5.3%

From Southwest Airlines's 10-K filed February 5, 2026, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$23.4B
Institutions reporting
926
Shares held vs prior quarter
▲ 4.4%
Positions opened / closed
155 / 94

Top buyers and sellers, Q2 2026: 462 institutions bought and 376 sold ; the biggest buyer was Goldman Sachs Group Inc (+6.9M shares) and the biggest seller Elliott Investment Management L.P (−6.0M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Primecap Management Co $2.5B 48.8M 10.7% ▲ 3.7%
Franklin Resources Inc $2.4B 46.6M 10.3% ▲ 4.9%
Vanguard Capital Management LLC $1.6B 31.6M 7.0% ▼ 0.1%
Blackrock, Inc. $1.5B 29.9M 6.6% ▲ 4.7%
State Street Corp $1.5B 29.3M 6.5% ▼ 0.7%
Elliott Investment Management L.P. $1.2B 24.3M 5.3% ▼ 19.9%
Vanguard Portfolio Management LLC $1.2B 24.0M 5.3% ▲ 3.8%
Price T Rowe Associates Inc $715M 13.9M 3.1% ▲ 0.1%
Geode Capital Management, LLC $654M 12.7M 2.8% ▼ 1.8%
Ameriprise Financial Inc $554M 10.8M 2.4% ▲ 7.9%
Goldman Sachs Group Inc $535M 10.4M 2.3% ▲ 195.8%
FMR LLC $495M 9.6M 2.1% ▼ 1.5%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Southwest Airlines's complete shareholder register. Values are as reported by the filers ; 6 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $0 0 trades by 0 insiders, last 12 months Insider sales History → $306,534 2 trades by 2 insiders · 0% under pre-set plans
Net ▼ $306,534 net selling
Insider Date Trade Shares Price Value
Atherton Lisa M Director April 7, 2026 Sell 118 $37.95 $4,478
Jones Justin EVP Operations December 5, 2025 Sell 8,085 $37.36 $302,056

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 63 trades and filings

In the last 12 months, 1 member of Congress disclosed 0 purchases and 1 sale of Southwest Airlines shares.

  • Matt Van Epps(R-TN 7):Sale (full), $1,001 - $15,000, traded June 16, 2026, filed June 17, 2026
  • Gilbert Ray Cisneros, Jr.(D-CA 31):Purchase, $1,001 - $15,000, traded September 5, 2025, filed October 10, 2025
  • Gilbert Ray Cisneros, Jr.(D-CA 31):Sale (full), $1,001 - $15,000, traded August 5, 2025, filed September 12, 2025

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around January 27, 2027 estimated from the company's past filing pattern, not announced

  • October 21, 2026
  • July 22, 2026
  • April 22, 2026
  • January 28, 2026
  • October 22, 2025
  • July 23, 2025

Recent SEC filings

Data status

When each part of this page on Southwest Airlines was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Southwest Airlines in brief

What does Southwest Airlines do?
Southwest Airlines is a US-listed company in the passenger airlines industry. Its financial year ends in December.
What is Southwest Airlines's stock ticker?
Southwest Airlines trades under the ticker LUV on NYSE. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Southwest Airlines's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Southwest Airlines reported revenue of $31.5B, 14.5% higher than a year earlier, according to its SEC filings.
What is Southwest Airlines's free cash flow?
Southwest Airlines's free-cash-flow margin is -1.4% of revenue over the trailing twelve months, ranking 10 of the 16 passenger airlines companies we cover.
Who are Southwest Airlines's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Primecap Management Co, Franklin Resources Inc and Vanguard Capital Management LLC. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
Is Southwest Airlines buying back stock, and does it pay a dividend?
Southwest Airlines spent $1.3B on share repurchases over the trailing twelve months, and its diluted share count fell 13.1% over the year.
What is Southwest Airlines's market cap?
On November 2, 2026, Southwest Airlines's market capitalisation was about $22.8B, with a price-to-earnings ratio of 21.6 and net debt of $2.3B. Market figures come from third-party market data and may be delayed.
Does Southwest Airlines pay a dividend?
Yes: Southwest Airlines paid $357M in dividends over the trailing twelve months, a dividend yield of 1.64% and a payout ratio of 33.9%.
How much debt does Southwest Airlines have?
Southwest Airlines's debt-to-equity ratio is 50.9%, from its latest balance sheet (99.0% five years earlier). The financial health section below sets out its other solvency checks.
Who are Southwest Airlines's competitors?
In our Passenger Airlines peer group, the companies closest to Southwest Airlines are Ryanair Holdings PLC, American Airlines Group Inc., United Airlines Holdings, Alaska AIR Group, Inc. and Delta Air Lines. The side-by-side comparison below sets their revenue, margins and growth against Southwest Airlines's.
Are insiders buying or selling Southwest Airlines stock?
Over the last 12 months, Southwest Airlines's directors and officers reported 0 open-market purchases and 2 sales on Form 4. The insider trading page charts every trade.
When is Southwest Airlines's next earnings date?
Around January 27, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Southwest Airlines announces its own schedule.