# SOUTHWEST AIRLINES CO (LUV) Informational only - not investment advice. CIK: 0000092380 SIC: 4512 Air Transportation, Scheduled SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [SIC Major Group 45](/major-group/45/) > [SIC 4512 Air Transportation, Scheduled](/industry/4512/) Latest 10-K filed: 2026-02-05 SEC page: https://www.sec.gov/edgar/browse/?CIK=92380 Filing source: https://www.sec.gov/Archives/edgar/data/92380/000009238026000004/luv-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0000092380-26-000004 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000092380.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 28,063,000,000 USD | 2025 | verified | | Net income | 441,000,000 USD | 2025 | verified | | Assets | 29,061,000,000 USD | 2025 | verified | | Free cash flow | -831,000,000 USD | 2025 | computed | | Net margin | 1.57% | 2025 | computed | | Operating margin | 1.53% | 2025 | computed | | Revenue YoY | +2.11% | 2025 | computed | | ROE | 5.53% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. Peer groups: [U.S. passenger airlines](/compare/airlines/) · SIC 4512 Air Transportation, Scheduled No market price, no rating, no forecast on this site. Not investment advice. ## Peer comparisons including LUV - U.S. passenger airlines: [peer review](/compare/airlines/) · [market-risk page](/compare/airlines/risk/) ### Peer percentile fingerprint | Ratio | LUV | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 1.6% | 0.7% | 62 | 9 | | Operating margin | 1.5% | 2.1% | 38 | 9 | | Revenue growth | 2.1% | 2.8% | 38 | 9 | | FCF margin | -3.0% | 2.9% | 25 | 9 | | ROE | 5.5% | 4.0% | 57 | 8 | | ROA | 1.5% | 0.5% | 62 | 9 | | Liabilities / equity | 2.64 | 3.47 | 14 | 8 | | Current ratio | 0.52 | 0.52 | 50 | 9 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4512 Air Transportation, Scheduled, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 28063000000 | USD | 2025 | 2026-02-05 | | Net income | 441000000 | USD | 2025 | 2026-02-05 | | Assets | 29061000000 | USD | 2025 | 2026-02-05 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000092380.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 20,289,000,000 | 21,146,000,000 | 21,965,000,000 | 22,428,000,000 | 9,048,000,000 | 15,790,000,000 | 23,814,000,000 | 26,091,000,000 | 27,483,000,000 | 28,063,000,000 | | Net income | 2,183,000,000 | 3,357,000,000 | 2,465,000,000 | 2,300,000,000 | -3,074,000,000 | 977,000,000 | 539,000,000 | 465,000,000 | 465,000,000 | 441,000,000 | | Operating income | 3,522,000,000 | 3,407,000,000 | 3,206,000,000 | 2,957,000,000 | -3,816,000,000 | 1,721,000,000 | 1,017,000,000 | 224,000,000 | 321,000,000 | 428,000,000 | | Diluted EPS | 3.45 | 5.57 | 4.29 | 4.27 | -5.44 | 1.61 | 0.87 | 0.76 | 0.76 | 0.79 | | Operating cash flow | 4,293,000,000 | 3,929,000,000 | 4,893,000,000 | 3,987,000,000 | -1,127,000,000 | 2,322,000,000 | 3,790,000,000 | 3,164,000,000 | 462,000,000 | 1,842,000,000 | | Capital expenditures | 2,038,000,000 | 2,123,000,000 | 1,922,000,000 | 1,027,000,000 | 515,000,000 | 505,000,000 | 3,924,000,000 | 3,520,000,000 | 2,054,000,000 | 2,673,000,000 | | Dividends paid | 222,000,000 | 274,000,000 | 332,000,000 | 372,000,000 | 188,000,000 | 0.00 | 0.00 | 428,000,000 | 430,000,000 | 399,000,000 | | Share buybacks | 1,750,000,000 | 1,600,000,000 | 2,000,000,000 | 2,000,000,000 | 451,000,000 | 0.00 | 0.00 | 0.00 | 250,000,000 | 2,550,000,000 | | Assets | 23,286,000,000 | 25,110,000,000 | 26,243,000,000 | 25,895,000,000 | 34,588,000,000 | 36,320,000,000 | 35,369,000,000 | 36,487,000,000 | 33,750,000,000 | 29,061,000,000 | | Stockholders' equity | 7,784,000,000 | 9,641,000,000 | 9,853,000,000 | 9,832,000,000 | 8,876,000,000 | 10,414,000,000 | 10,687,000,000 | 10,515,000,000 | 10,350,000,000 | 7,981,000,000 | | Cash and cash equivalents | 1,680,000,000 | 1,495,000,000 | 1,854,000,000 | 2,548,000,000 | 11,063,000,000 | 12,480,000,000 | 9,492,000,000 | 9,288,000,000 | 7,509,000,000 | 3,231,000,000 | | Free cash flow | 2,255,000,000 | 1,806,000,000 | 2,971,000,000 | 2,960,000,000 | -1,642,000,000 | 1,817,000,000 | -134,000,000 | -356,000,000 | -1,592,000,000 | -831,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 10.76% | 15.88% | 11.22% | 10.26% | -33.97% | 6.19% | 2.26% | 1.78% | 1.69% | 1.57% | | Operating margin | 17.36% | 16.11% | 14.60% | 13.18% | -42.18% | 10.90% | 4.27% | 0.86% | 1.17% | 1.53% | | Return on equity | 28.04% | 34.82% | 25.02% | 23.39% | -34.63% | 9.38% | 5.04% | 4.42% | 4.49% | 5.53% | | Return on assets | 9.37% | 13.37% | 9.39% | 8.88% | -8.89% | 2.69% | 1.52% | 1.27% | 1.38% | 1.52% | | Liabilities / equity | 1.99 | 1.60 | 1.66 | 1.63 | 2.90 | 2.49 | 2.31 | 2.47 | 2.26 | 2.64 | | Current ratio | 0.66 | 0.70 | 0.64 | 0.67 | 2.02 | 1.97 | 1.43 | 1.14 | 0.92 | 0.52 | ## As-reported value updates 6 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/LUV/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000092380.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.44 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.27 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 1.08 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 6,525,000,000 | 193,000,000 | 0.31 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 6,823,000,000 | -252,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 6,329,000,000 | -231,000,000 | -0.39 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 7,354,000,000 | 367,000,000 | 0.58 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 6,870,000,000 | 67,000,000 | 0.11 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 6,930,000,000 | 261,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 6,428,000,000 | -149,000,000 | -0.26 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 7,244,000,000 | 213,000,000 | 0.39 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 6,949,000,000 | 54,000,000 | 0.10 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 7,442,000,000 | 323,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 7,249,000,000 | 227,000,000 | 0.45 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 8,432,000,000 | 233,000,000 | 0.47 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from LUV's latest 10-K: [/company/LUV/business/](/company/LUV/business/). ## Risk Factors Verbatim Item 1A Risk Factors from LUV's latest 10-K: [/company/LUV/risk-factors/](/company/LUV/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/92380/000009238026000077/luv-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-07-23 Report date: 2026-06-30 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Relevant comparative operating statistics for the three and six months ended June 30, 2026 and 2025 are included below. The Company provides these operating statistics because they are commonly used in the airline industry and, as such, allow readers to compare the Company’s performance against its results for the prior year period, as well as against the performance of the Company’s peers. [[GREPCENT_TABLE]] [["","","Three months ended June 30,"],["","","2026","","2025","","Change"],["Revenue passengers carried (000s)","","34,331","","","35,507","","","(3.3)","%"],["Enplaned passengers (000s)","","44,518","","","44,385","","","0.3","%"],["Revenue passenger miles (RPMs) (in millions)(a)","","37,346","","","36,885","","","1.2","%"],["Available seat miles (ASMs) (in millions)(b)","","47,093","","","46,996","","","0.2","%"],["Load factor(c)","","79.3","%","","78.5","%","","0.8","","pts."],["Average length of passenger haul (miles)","","1,088","","","1,039","","","4.7","%"],["Average aircraft stage length (miles)","","784","","","786","","","(0.3)","%"],["Trips flown","","367,740","","","367,952","","","(0.1)","%"],["Seats flown (000s)(d)","","59,009","","","59,265","","","(0.4)","%"],["Seats per trip(e)","","160.5","","","161.1","","","(0.4)","%"],["Average passenger fare","","$","225.61","","","$","186.65","","","20.9","%"],["Passenger revenue yield per RPM (cents)(f)","","20.74","","","17.97","","","15.4","%"],["Operating revenues per ASM (cents)(g)","","17.91","","","15.41","","","16.2","%"],["Operating revenues per ASM, excluding special items (cents)","","18.51","","","15.41","","","20.1","%"],["Passenger revenue per ASM (cents)(h)","","16.45","","","14.10","","","16.7","%"],["Operating expenses per ASM (cents)(i)","","17.30","","","14.94","","","15.8","%"],["Operating expenses per ASM, excluding fuel (cents)","","12.60","","","12.11","","","4.0","%"],["Operating expenses per ASM, excluding special items (cents)","","17.27","","","14.89","","","16.0","%"],["Operating expenses per ASM, excluding fuel and special items (cents)","","12.56","","","12.07","","","4.1","%"],["Operating expenses per ASM, excluding fuel, profitsharing, and special items (cents)","","12.45","","","12.04","","","3.4","%"],["Fuel costs per gallon, including fuel tax (unhedged)","","$","3.87","","","$","2.26","","","71.2","%"],["Fuel costs per gallon, including fuel tax","","$","3.92","","","$","2.32","","","69.0","%"],["Fuel consumed, in gallons (millions)","","564","","","570","","","(1.1)","%"],["Active full-time equivalent Employees","","73,456","","","72,242","","","1.7","%"],["Aircraft at end of period","","803","","","810","","","(0.9)","%"]] [[/GREPCENT_TABLE]] 25 Table of Contents [[GREPCENT_TABLE]] [["","","Six months ended June 30,"],["","","2026","","2025","","Change"],["Revenue passengers carried (000s)","","63,506","","","65,497","","","(3.0)","%"],["Enplaned passengers (000s)","","81,795","","","81,524","","","0.3","%"],["Revenue passenger miles (RPMs) (in millions)(a)","","68,497","","","67,513","","","1.5","%"],["Available seat miles (ASMs) (in millions)(b)","","89,142","","","88,427","","","0.8","%"],["Load factor(c)","","76.8","%","","76.3","%","","0.5","","pts."],["Average length of passenger haul (miles)","","1,079","","","1,031","","","4.7","%"],["Average aircraft stage length (miles)","","781","","","779","","","0.3","%"],["Trips flown","","698,110","","","699,838","","","(0.2)","%"],["Seats flown (000s)(d)","","112,039","","","112,502","","","(0.4)","%"],["Seats per trip(e)","","160.5","","","160.8","","","(0.2)","%"],["Average passenger fare","","$","225.76","","","$","189.90","","","18.9","%"],["Passenger revenue yield per RPM (cents)(f)","","20.93","","","18.42","","","13.6","%"],["Operating revenues per ASM (cents)(g)","","17.59","","","15.46","","","13.8","%"],["Operating revenues per ASM, excluding special items (cents)","","17.91","","","15.46","","","15.8","%"],["Passenger revenue per ASM (cents)(h)","","16.08","","","14.07","","","14.3","%"],["Operating expenses per ASM (cents)(i)","","16.90","","","15.46","","","9.3","%"],["Operating expenses per ASM, excluding fuel (cents)","","12.90","","","12.55","","","2.8","%"],["Operating expenses per ASM, excluding special items (cents)","","16.89","","","15.33","","","10.2","%"],["Operating expenses per ASM, excluding fuel and special items (cents)","","12.88","","","12.42","","","3.7","%"],["Operating expenses per ASM, excluding fuel, profitsharing, and special items (cents)","","12.76","","","12.40","","","2.9","%"],["Fuel costs per gallon, including fuel tax (unhedged)","","$","3.31","","","$","2.33","","","42.1","%"],["Fuel costs per gallon, including fuel tax","","$","3.37","","","$","2.40","","","40.4","%"],["Fuel consumed, in gallons (millions)","","1,059","","","1,071","","","(1.1)","%"],["Active full-time equivalent Employees","","73,456","","","72,242","","","1.7","%"],["Aircraft at end of period","","803","","","810","","","(0.9)","%"]] [[/GREPCENT_TABLE]] (a)A revenue passenger mile is one paying passenger flown one mile. Also referred to as "traffic," which is a measure of demand for a given period. (b)An available seat mile is one seat (empty or full) flown one mile. Also referred to as "capacity," which is a measure of supply or the space available to carry passengers in a given period. (c)Revenue passenger miles divided by available seat miles. (d)Seats flown is calculated using total number of seats available by aircraft type multiplied by the total trips flown by the same aircraft type during a particular period. (e)Seats per trip is calculated by dividing seats flown by trips flown. (f)Calculated as passenger revenue divided by revenue passenger miles. Also referred to as "yield," this is the average cost paid by a paying passenger to fly one mile, which is a measure of revenue production and fares. (g)Calculated as operating revenues divided by available seat miles. Also referred to as "operating unit revenues" or "RASM," this is a measure of operating revenue production based on the total available seat miles flown during a particular period. (h)Calculated as passenger revenue divided by available seat miles. Also referred to as "passenger unit revenues", this is a measure of passenger revenue production based on the total available seat miles flown during a particular period. (i)Calculated as operating expenses divided by available seat miles. Also referred to as "unit costs" or "cost per available seat mile" or "CASM," this is the average cost to fly an aircraft seat (empty or full) one mile, which is a measure of cost efficiency. 26 Table of Contents Financial Highlights The Company reports its results in accordance with GAAP. The Company also provides certain non-GAAP financial measures which the Company's management also utilizes to evaluate its ongoing financial performance, and the Company believes provides additional insight to investors as supplemental information to its GAAP results, as noted in the following tables. See Note Regarding Use of Non-GAAP Financial Measures and the Reconciliation of Reported Amounts to Non-GAAP Financial Measures for additional detail regarding non-GAAP financial measures. [[GREPCENT_TABLE]] [["","","Three months ended June 30,"],["(in millions, except per share amounts)"],["GAAP","","2026","","2025","","% Change"],["Operating income","","$","285","","","$","225","","","26.7","%"],["Net income","","$","233","","","$","213","","","9.4","%"],["Net income per share, diluted","","$","0.47","","","$","0.39","","","20.5","%"],["Non-GAAP"],["Operating income","","$","585","","","$","245","","","138.8","%"],["Net income","","$","465","","","$","230","","","102.2","%"],["Net income per share, diluted","","$","0.94","","","$","0.43","","","119.0","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","","Six months ended June 30,"],["(in millions, except per share amounts)"],["GAAP","","2026","","2025","","% Change"],["Operating income","","$","615","","","$","2","","","n.m."],["Net income","","$","460","","","$","64","","","n.m."],["Net income per share, diluted","","$","0.92","","","$","0.11","","","n.m."],["Non-GAAP"],["Operating income","","$","915","","","$","117","","","n.m."],["Net income","","$","691","","","$","153","","","n.m."],["Net income per share, diluted","","$","1.39","","","$","0.27","","","n.m."]] [[/GREPCENT_TABLE]] Despite a dynamic cost and fuel environment, the Company’s Operating income, Net income, and Net income per share, diluted, for the three and six months ended June 30, 2026, on a GAAP and non-GAAP basis, improved compared with the same prior year period, driven primarily by strong revenue performance, including an all-time quarterly record Operating revenue performance for the three months ended June 30, 2026, partially offset by higher Aircraft fuel and related taxes expense and Salaries, wages, and benefits expense. On a GAAP basis, the Company’s results for the three and six months ended June 30, 2026, included a reversal of $285 million of breakage revenue recorded in prior years related to a portion of flight credits issued to Customers between July 2022 and December 2025 that have either been redeemed or are expected to be redeemed in future periods. This adjustment was treated as a special item and excluded from the Company’s presentation of non-GAAP results. See Note Regarding Use of Non-GAAP Financial Measures and Notes 1 and 5 to the unaudited Condensed Consolidated Financial Statements for further information. Operating expense for the six months ended June 30, 2025, on a non-GAAP basis, excluded pre-tax charges of $115 million, most notably $62 million related to severance and related professional fees associated with the Company's February 2025 reduction in workforce. Company Overview 27 Table of Contents The Company has substantially completed the implementation of its previously announced transformational initiatives, which were planned and designed to attract new Customers and improve both the Company's operational and financial performance. Since the introduction of assigned and extra legroom seating on January 27, 2026, the Company has successfully integrated these offerings into its operations, contributing to improved passenger yields and incremental revenue. Despite significantly higher fuel costs, results reflect record revenue performance, significant earnings growth and margin expansion, broad demand strength, continued cost discipline, and strong Customer engagement with the Company’s enhanced product offering. The Company has also continued to enhance its onboard offerings, with improvements such as in-seat power, larger overhead bins, and upgraded WiFi, with the first Starlink-equipped aircraft entering service on June 22, 2026, marking the beginning of a new era of inflight connectivity at Southwest. Work is well underway on a refreshed cabin design, including new, more comfortable RECARO seats. As of July 22, 2026, 107 aircraft retrofitted with RECARO seats have been placed into service. In addition, the Company entered into new partnerships with Singapore Airlines, which will enable jointly operated itineraries connecting through the carriers' shared gateway airports in Los Angeles, Seattle-Tacoma, and San Francisco, and with Air Premia, which will enable travel across the Pacific with interline connections at the carriers' shared gateway airports in Honolulu, Los Angeles, and San Francisco. Since February 13, 2025, the Company has implemented and/or announced strategic partnerships with a total of nine carriers, through which Customers can book itineraries that connect the Company's vast domestic network to destinations around the world. The ongoing geopolitical developments in the Middle East continue to impact the market prices of products that are derived from crude oil, including jet fuel. The [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/92380/000009238026000004/luv-20251231.htm Complete FY 2025 MD&A: /company/LUV/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-05 Report date: 2025-12-31 Item 7.        Management's Discussion and Analysis of Financial Condition and Results of Operations YEAR IN REVIEW The Company had a record full year revenue performance in 2025, producing operating revenues of $28.1 billion, due in part to continued strong domestic travel demand, as well as the execution of transformational initiatives, which has resulted in strong financial performance and driven incremental Shareholder value. The Company recorded results for 2025 and 2024, on an accounting principles generally accepted in the United States ("GAAP") and non-GAAP basis, as noted in the following tables. See Note Regarding Use of Non-GAAP Financial Measures and the Reconciliation of Reported Amounts to Non-GAAP Financial Measures for additional detail regarding non-GAAP financial measures. [[GREPCENT_TABLE]] [["(in millions, except per share amounts)","","Year ended December 31,"],["GAAP","","2025","","2024","","Change"],["Operating income","","$","428","","","$","321","","","33.3"],["Net income","","$","441","","","$","465","","","(5.2)"],["Net income per share, diluted","","$","0.79","","","$","0.76","","","3.9"],["Non-GAAP"],["Operating income","","$","539","","","$","457","","","17.9"],["Net income","","$","512","","","$","597","","","(14.2)"],["Net income per share, diluted","","$","0.93","","","$","0.96","","","(3.1)"]] [[/GREPCENT_TABLE]] The Company's operating income, as shown above on a GAAP and non-GAAP basis for the year ended December 31, 2025, increased compared to the same prior year period primarily driven by revenue initiatives, including the Company's policy change related to certain Customers' first and second checked bags that became effective May 28, 2025. This increase was combined with outperformance of cost reduction goals and lower year-over-year Fuel and oil expense primarily driven by lower jet fuel prices, partially offset by higher salaries, wages, and benefits expense. Despite the negative impacts to bookings and travel associated with the government shutdown during a portion of fourth quarter 2025, the Company earned an outsized portion of its 2025 operating income during the period. On a GAAP basis, the Company achieved in excess of 90 percent, and on a non-GAAP basis, achieved in excess of 70 percent, of its annual operating income during the fourth quarter of the year, both primarily as a result of the ramp-up of its transformational and revenue initiatives over the course of the year. The Company's net income, as shown above on a GAAP and non-GAAP basis for the year ended December 31, 2025, decreased compared to the same prior year period primarily due to a decrease in interest income driven by a lower cash and investment balance. Additionally, on a GAAP basis, the Company’s results for the year ended December 31, 2024, included a reversal of $116 million of breakage revenue recorded in prior years related to a portion of flight credits issued to Customers during 2022 and prior that either were redeemed or are expected to be redeemed in future periods. The majority of these flight credits were issued during the COVID-19 pandemic as the Company was making significant changes to its flight schedules based on fluctuating demand. This adjustment was treated as a special item and excluded from the Company's presentation of non-GAAP results. See Note Regarding Use of Non-GAAP Financial Measures and the Reconciliation of Reported Amounts to Non-GAAP Financial Measures for additional detail regarding non-GAAP financial measures. Operating Statistics 63 Table of Contents The Company provides the operating data below for the years ended December 31, 2025 and 2024 because these statistics are commonly used in the airline industry and, therefore, allow readers to compare the Company’s performance against its results for the prior year period, as well as against the performance of the Company’s peers. [[GREPCENT_TABLE]] [["","","Year ended December 31,"],["","","2025","","2024","","Change"],["Operating Data:"],["Revenue passengers carried (000s)","","134,110","","","140,023","","","(4.2)","%"],["Enplaned passengers (000s)","","168,334","","","175,466","","","(4.1)","%"],["Revenue passenger miles (RPMs) (in millions)(a)","","139,443","","","142,515","","","(2.2)","%"],["Available seat miles (ASMs) (in millions)(b)","","180,046","","","177,250","","","1.6","%"],["Load factor(c)","","77.4","%","","80.4","%","","(3.0) pts."],["Average length of passenger haul (miles)","","1,040","","","1,018","","","2.2","%"],["Average aircraft stage length (miles)","","780","","","763","","","2.2","%"],["Trips flown","","1,415,822","","","1,443,866","","","(1.9)","%"],["Seats flown (000s)(d)","","228,193","","","230,187","","","(0.9)","%"],["Seats per trip(e)","","161.2","","","159.4","","","1.1","%"],["Average passenger fare(k)","","$","190.41","","","$","178.40","","","6.7","%"],["Passenger revenue yield per RPM (cents)(f)(k)","","18.31","","","17.53","","","4.4","%"],["Operating revenues per ASM (cents)(g)(k)","","15.59","","","15.51","","","0.5","%"],["Passenger revenue per ASM (cents)(h)(k)","","14.18","","","14.09","","","0.6","%"],["Operating expenses per ASM (cents)(i)","","15.35","","","15.32","","","0.2","%"],["Operating expenses per ASM, excluding fuel (cents)","","12.44","","","12.05","","","3.2","%"],["Operating expenses per ASM, excluding fuel and profit sharing (cents)","","12.38","","","11.99","","","3.3","%"],["Fuel costs per gallon, including fuel tax","","$","2.41","","","$","2.64","","","(8.7)","%"],["Fuel costs per gallon, including fuel tax, economic","","$","2.41","","","$","2.66","","","(9.4)","%"],["Fuel consumed, in gallons (millions)","","2,169","","","2,194","","","(1.1)","%"],["Active full-time equivalent Employees","","72,790","","","72,450","","","0.5","%"],["Aircraft at end of period(j)","","803","","","803","","","\u2014","%"]] [[/GREPCENT_TABLE]] (a)A revenue passenger mile is one paying passenger flown one mile. Also referred to as "traffic," which is a measure of demand for a given period. (b)An available seat mile is one seat (empty or full) flown one mile. Also referred to as "capacity," which is a measure of the space available to carry passengers in a given period. (c)Revenue passenger miles divided by available seat miles. (d)Seats flown is calculated using total number of seats available by aircraft type multiplied by the total trips flown by the same aircraft type during a particular period. (e)Seats per trip is calculated by dividing seats flown by trips flown. (f)Calculated as passenger revenue divided by revenue passenger miles. Also referred to as "yield," this is the average cost paid by a paying passenger to fly one mile, which is a measure of revenue production and fares. (g)Calculated as operating revenues divided by available seat miles. Also referred to as "operating unit revenues" or "RASM," this is a measure of operating revenue production based on the total available seat miles flown during a particular period. (h)Calculated as passenger revenue divided by available seat miles. Also referred to as "passenger unit revenues," this is a measure of passenger revenue production based on the total available seat miles flown during a particular period. (i)Calculated as operating expenses divided by available seat miles. Also referred to as "unit costs" or "cost per available seat mile" or "CASM," this is the average cost to fly an aircraft seat (empty or full) one mile, which is a measure of cost efficiencies. 64 Table of Contents (j)Included three Boeing 737 Next Generation aircraft in temporary storage as of December 31, 2024. (k)The 2024 Passenger and Operating revenue metrics include the impact of the $116 million breakage revenue adjustment recorded as a change in estimate and reduction in Passenger revenue during fourth quarter 2024. See Note 1 to the Consolidated Financial Statements for further information. Company Overview 2025 Transformational Initiative Highlights The Company experienced a year of meaningful transformation and execution as it implemented its transformational initiatives, which were planned and designed to attract new Customers and improve both the Company's operational and financial performance. During 2025, the Company: •Changed its product offering, including the implementation of bag fees for most fare products, addition of a Basic fare product, and transition to new fare products, Choice, Choice Preferred, and Choice Extra; •Updated its flight credit policy for tickets purchased on or after May 28, 2025; •Began selling assigned and extra legroom seating for travel beginning January 27, 2026; •Expanded distribution channels through new partnerships with online travel agencies, Expedia and Priceline; •Better optimized its Rapid Rewards® program, including variable earn and burn rates; •Amended its co-brand credit card agreement with JPMorgan Chase Bank, N.A. (“Chase”), including new benefits and improved economics; •Launched Getaways by Southwest™, an in-house packaged vacations product; •Announced free Wi-Fi sponsored by T-Mobile for all Rapid Rewards Members beginning October 24, 2025; •Added redeye flying to increase aircraft utilization and network connectivity; •Reduced turn time to increase aircraft utilization; •Deployed new technology boosting operational reliability, a key enabler of the Company's #1 rank in The Wall Street Journal Best U.S. Airlines of 2025; •Launched a partnership with Hahnair to expand its global ticketing reach; and •Announced six strategic partnerships with Icelandair, EVA Air, China Airlines, Philippine Airlines, Condor, and Turkish Airlines. In January 2026, the Company began operating assigned and extra legroom seating for travel beginning on January 27, 2026, which required retrofitting 780 aircraft. With assigned and extra legroom seating becoming operational, Southwest expects future earnings upside based on how booking behavior related to these initiatives unfolds. This includes upsell revenue from close-in bookings, which are more closely affiliated with business and price-flexible Customers, as well as growth in business and leisure Customer segments driven by the more attractive new product offering. The Company has also continued to enhance its onboard offerings, with improvements such as faster WiFi, in-seat power, and larger overhead bins, and work is well underway on a refreshed cabin design, including new, more comfortable RECARO seats. The first Boeing 737-8 (“-8”) aircraft with an updated cabin was delivered and entered service on October 16, 2025. Other Initiatives and Developments The Company has also announced its intention to commence new service at multiple locations in an effort to grow its network and provide more destinations for Customers. These locations include: •Cyril E. King International Airport on St. Thomas beginning early 2026; •McGhee Tyson Airport in Knoxville, Tennessee beginning March 5, 2026; •Princess Juliana International Airport on St. Maarten beginning April 7, 2026; •Charles M. Schulz Sonoma County Airport in Santa Rosa, California beginning April 7, 2026; and •Ted Stevens Anchorage International Airport in Anchorage, Alaska beginning in the first half of 2026. 65 Table of Contents During 2025, the Company continued to deliver value to its Shareholders by returning $2.9 billion to Shareholders through $399 million in dividend payments and $2.6 billion through accelerated share repurchase programs entered into by the Company with third party financial institutions. In addition, under a forward contract entered into by the Company in December 2025, the Company committed $750 million for an accelerated share repurchase program with a third party financial institution (the “January 2026 ASR Program”) under which the Company paid $750 million in January 2026 and received total delivery of 17,965,193 shares to the Company as settlement in full. Additionally, the Company l [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/LUV/mda/fy2025/ All MD&A years: /company/LUV/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/LUV/mda/fy2024/): filed 2025-02-07; accession 0000092380-25-000024 (https://www.sec.gov/Archives/edgar/data/92380/000009238025000024/luv-20241231.htm) - [FY 2023 MD&A](/company/LUV/mda/fy2023/): filed 2024-02-06; accession 0000092380-24-000027 (https://www.sec.gov/Archives/edgar/data/92380/000009238024000027/luv-20231231.htm) - [FY 2022 MD&A](/company/LUV/mda/fy2022/): filed 2023-02-07; accession 0000092380-23-000010 (https://www.sec.gov/Archives/edgar/data/92380/000009238023000010/luv-20221231.htm) - [FY 2021 MD&A](/company/LUV/mda/fy2021/): filed 2022-02-07; accession 0000092380-22-000007 (https://www.sec.gov/Archives/edgar/data/92380/000009238022000007/luv-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 4512 Air Transportation, Scheduled) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/LUV.md · JSON record: /company/LUV.json · verified financials: /company/LUV/financials.json / /company/LUV/financials.csv · machine TOC for the whole site: /llms.txt