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Southwest AirlinesLUV

Legal name
Southwest Airlines Co.
Sector
Other
Industry
Air Transportation, Scheduled
Exchange
NYSE

Stock Price $LUV

Latest filings

You are here#80 of 92 in Industrials by market cap

Filing record · 2016–202610-K1210-Q338-K204

LUV filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 204 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’17Jan ’17
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Material agreement8-K · Nov ’25Nov ’25

01—Key figures

Source: 10-KFY2025
Source: 10-KFY2025
Source: 10-KFY2025
Source: 10-KFY2025

Revenue Trend

Year-over-year comparison from 10-K annual reports

  19. $28.06B
YoY changeLargest recent move+74.5%in FY21Latest +2.1%

Latest bar from 10-KFY2025Click a bar to open its SEC filing

View full history →
All LUV Financial Metrics58 metrics

Income Statement12

Balance Sheet26

Cash Flow15

Per Share5

02—Overview

Southwest Airlines Financial Overview 2021–2025

Updated Nov 4, 2026

Southwest Airlines' stock closed FY2025 at $41.33a, or 52.3x earnings, on EPS of just $0.79. That is a rich multiple for an airline whose profit has barely moved in years. The core thesis: Southwest is growing revenue steadily while labor costs and a lost fuel hedge cap earnings, so the market was paying for a turnaround that had not yet shown up in reported results.

Revenue grew from $15.8 billion in FY2021 to $28.1 billionb in FY2025, a record. The profit line tells a different story. GAAP net income was $465 million in FY2024 and $441 million in FY2025. Salaries, wages, and benefits rose 5.9% to $12.96 billion in FY2025, after a 9.8% jump to $12.24 billion in FY2024. Fuel offered relief, falling 9.8% to $5.24 billion in FY2025. Operating cash flow recovered to $1.84 billion from $462 million, though cash and equivalents fell to $3.23 billion.

Capital returns shifted sharply. Southwest returned $2.9 billionc to shareholders in FY2025, including $2.6 billion in accelerated buybacks. Early 2026 results show the new revenue initiatives working: Q3 2026 revenue rose 21.2% to $8.42 billion, and net income hit $270 million. But fuel climbed 61.7% to $2.15 billion, and the company has no hedges left. At the close of FY2024, the data carries no price or P/E, so the 52.3x reading stands alone as the market's bet on those initiatives.

Recent Developments (Q2 and Q3 2026)

Southwest's biggest development was a guidance cut. In July, management lowered full-year 2026 adjusted EPS to $3.25 to $4.25d from at least $4.00. In October it cut again to $2.60 to $2.85. Fuel at $3.92 per gallon drove both cuts. Q3 2026 adjusted EPS was $0.66, and operating margin was 4.5%, up 4.0 points. Q2 2026 carried a $285 million breakage reversal.

The balance sheet grew heavier. Southwest drew a $1.5 billione term loan, opened a $2.0 billion revolver in August 2026, and issued $1.25 billion of notes on November 2, 2026. Liquidity was $5.6 billion. The board added two directors, and Q4 2026 RASM guidance is up 19% to 21%.

Bull case: record RASM and managed business revenue up 30% show pricing power. Bear case: unhedged fuel and rising debt leave little cushion. The 53.2x P/E is as of October 21, 2026, not today, and rests on $0.79 of annual EPS.

What to watch: Q4 2026 fuel cost against the $0.55 to $0.80 adjusted EPS guide; the March 2, 2027 Capital Markets Day targets

03—Filings

Recent SEC Filings

  1. 8-KSouthwest Airlines 8-K Report, Material Agreement (Nov 2, 2026)On November 2, 2026, Southwest Airlines Co. completed a public offering of $1.25 billion aggregate principal amount of debt securities. The offering consisted of $600 million of 5.750% Notes due 2029 and $650 million of 6.000% Notes due 2031. The Notes were issued under a base indenture dated February 6, 2024 with U.S. Bank Trust Company, National Association, as trustee, as supplemented by an officer's certificate dated November 2, 2026. The offering was made under the company's automatic shelf registration statement on Form S-3 (Registration No. 333-276909) and a prospectus supplement dated October 26, 2026, and it was completed under an underwriting agreement dated October 26, 2026 with Barclays Capital Inc., BNP Paribas Securities Corp., Standard Chartered Bank, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC. The filing reports the Notes as a direct financial obligation of the company under Item 2.03, which means the company has taken on new debt of $1.25 billion in total. The filing sets out the coupon rates and maturities of the two tranches but does not describe any other terms of the offering. The filing also lists the exhibits, which include the underwriting agreement, the forms of the two global notes, and a legal opinion and consent from Vinson & Elkins L.L.P.
  2. 8-KSouthwest Airlines 8-K Report, Financial Results (Oct 21, 2026)Southwest Airlines Co. (NYSE: LUV) furnished a press release announcing third quarter 2026 results under Item 2.02. Operating revenues were $8.4 billion, up 21.2% year-over-year, a third-quarter company record, with unit revenues (RASM) up 21.6% to an all-time record on capacity down 0.4%. Net income was $270 million, or $0.55 diluted EPS, versus $54 million in the prior-year quarter. Excluding special items, adjusted net income was $328 million, or $0.66 adjusted EPS, and adjusted operating margin was 5.4%, up 4.8 points. Fuel was a significant headwind: fuel cost per gallon was $3.92, above prior assumptions of $3.70 to $3.75, and fuel expense rose $821 million year-over-year, representing a $1.08 headwind to adjusted EPS. For fourth quarter 2026, the company guides to adjusted EPS of $0.55 to $0.80, RASM growth of 19% to 21%, and CASM-X growth of 4.0% to 4.5%, with fuel assumed at approximately $4.553 per gallon. Full-year 2026 adjusted EPS guidance is $2.60 to $2.85, and full-year capacity growth is now expected at approximately 1.2%, versus prior guidance of approximately 1.5%. Liquidity ended the quarter at $5.6 billion, gross leverage was 1.9x, and $176 million was paid in dividends during the quarter. The company also announced a Capital Markets Day in New York City on March 2, 2027, where it plans to present a multi-year financial framework and targets.
  3. 8-KSouthwest Airlines 8-K Report, Material Agreement (Aug 12, 2026)Southwest Airlines Co. (LUV) filed this Form 8-K to report two related actions taken in connection with its credit facilities. On August 10, 2026, the Company entered into a new $2 billion five-year revolving credit facility agreement with a syndicate of lenders, with JPMorgan Chase Bank, N.A. and Citibank, N.A. as co-administrative agents and JPMorgan Chase Bank, N.A. as paying agent. As of the filing date, no amounts were outstanding under the facility. The facility has an uncommitted accordion feature that could increase its size to $3 billion, subject to procuring incremental commitments. As of August 10, 2026, the Company terminated its existing revolving credit facility dated August 3, 2016, as amended, which would otherwise have expired August 4, 2028. The new facility's maturity date is August 10, 2031, and the Company may request up to two one-year extensions, subject to lender consent. Borrowings bear interest at Term SOFR (subject to a 1.00% floor) plus a margin of 0.875% to 1.625%, or at the Alternate Base Rate plus a margin of 0.000% to 0.625%, based on the Company's Index Debt Rating. The Company also pays quarterly commitment fees on unused commitments. The agreement includes a Collateral Coverage Test requiring a lien-free pool of specified aircraft and related assets with a minimum appraised value of 1.25 times the total commitment, and a financial covenant requiring a Coverage Ratio of 1.25 to 1.00. The Company has a one-time option to reduce this ratio requirement to 0.80 to 1.00 for two consecutive fiscal quarters. The full agreement is filed as Exhibit 10.1.
  4. 8-KSouthwest Airlines 8-K Report, Executive Changes (Aug 10, 2026)Southwest Airlines Co. (LUV) filed this Current Report on Form 8-K under Item 5.02(d) to disclose that on August 10, 2026, its Board of Directors appointed Varun Krishna and Jason T. Liberty as directors, effective immediately. Mr. Krishna is Chief Executive Officer of Rocket Companies, Inc. and interim Chief Executive Officer of Redfin. Mr. Liberty is Chair and Chief Executive Officer of Royal Caribbean Cruises Ltd. In connection with the appointments, the Board increased its size to thirteen members, effective immediately. The filing states that neither new director has been appointed to any Board committee, and that neither has a direct or indirect material interest in any transaction requiring disclosure under Item 404(a) of Regulation S-K. It also states there are no arrangements or understandings under which either was selected as a director. The filing describes the standard non-employee director compensation that Mr. Krishna and Mr. Liberty will receive, including a $100,000 annual retainer (pro-rated for the June 2026 to May 2027 service period), travel privileges, eligibility for equity grants under the Amended and Restated 2007 Equity Incentive Plan, and eligibility for a retirement payment under the Severance Plan for Directors. The filing does not report any financial results or operating metrics.
  5. 8-KSouthwest Airlines 8-K Report, Executive Changes (Aug 7, 2026)Southwest Airlines Co. (the Company) filed this Form 8-K under Item 5.02(e) to report changes to executive compensation. On August 5, 2026, the Compensation Committee of the Board approved changes to annual base salaries, effective August 15, 2026, and long-term incentive opportunity targets for certain officers, including the named executive officers. The independent directors also approved changes to Bob Jordan's base salary and long-term incentive target, effective the same date. The Committee said it reassessed its airline peer group in May 2026 after considering the Company's transformation, the expanded scope of senior roles, and external recruiting activity involving senior leaders. It decided in August 2026 to align executive pay more closely with the average total direct compensation of American Airlines Group Inc., Delta Air Lines, Inc., and United Airlines Holdings, Inc. It used unaged 2025 peer data from the peers' 2026 proxy statements, and stated that this approach was expected to set pay modestly below the 2026 market position of those peers. The filing lists modified base salaries and long-term incentive targets for the named executive officers. Bob Jordan, President, CEO & Vice Chairman, has a base salary of $1,225,000, a long-term incentive target of 1200% of base salary, and a short-term incentive target of 200%. The other named executive officers have base salaries of $815,000 for Andrew Watterson (COO) and $805,000 each for Tom Doxey (CFO), Justin Jones, and Anthony Roach, with long-term incentive targets of 500% and short-term incentive targets of 150% for Watterson and 135% for the other three.
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04—See also

Related Companies

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