luv-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


			or


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			For the transition period from ________ to ________

Commission File No. 1-7259

SOUTHWEST AIRLINES CO.

(Exact name of registrant as specified in its charter)


Texas		74-1563240
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)
P.O. Box 36611
Dallas,	Texas	75235-1611
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (214) 792-4000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($1.00 par value)	LUV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No x

Number of shares of Common Stock outstanding as of the close of business on April 22, 2026: 488,773,713

TABLE OF CONTENTS TO FORM 10-Q

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheet as of March 31, 2026 and December 31, 2025

Condensed Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2026 and 2025

Condensed Consolidated Statement of Stockholders' Equity as of March 31, 2026 and 2025

Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2026 and 2025

Notes to Condensed Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits

SIGNATURES

Table of Contents

SOUTHWEST AIRLINES CO.

FORM 10-Q

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Southwest Airlines Co.

Condensed Consolidated Balance Sheet

(in millions)

(unaudited)


	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	3,328	$	3,231

Accounts and other receivables	1,254		1,149
Inventories of parts and supplies, at cost	833		775
Prepaid expenses and other current assets	554		490
Total current assets	5,969		5,645

Property and equipment, at cost:
Flight equipment	26,254		26,293
Ground property and equipment	9,317		9,163
Deposits on flight equipment purchase contracts	494		401
Assets constructed for others	88		88
	36,153		35,945
Less allowance for depreciation and amortization	15,777		15,700
	20,376		20,245
Goodwill	970		970
Operating lease right-of-use assets	1,019		1,089
Other assets	1,021		1,112
	$	29,355	$	29,061

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,114	$	1,991
Accrued liabilities	2,170		2,349
Current operating lease liabilities	300		312
Air traffic liability	7,049		5,945
Current maturities of long-term debt	851		324
Total current liabilities	12,484		10,921

Long-term debt less current maturities	4,536		4,577
Air traffic liability - noncurrent	1,201		1,219
Deferred income taxes	2,353		2,289

Noncurrent operating lease liabilities	709		768
Other noncurrent liabilities	1,197		1,306
Stockholders' equity:
Common stock	888		888
Capital in excess of par value	4,260		4,322
Retained earnings	16,526		16,388
Accumulated other comprehensive loss	(1)		(24)
Treasury stock, at cost	(14,798)		(13,593)
Total stockholders' equity	6,875		7,981
	$	29,355	$	29,061

See accompanying notes.

Table of Contents

Southwest Airlines Co.

Condensed Consolidated Statement of Comprehensive Income (Loss)

(in millions, except per share amounts)

(unaudited)


	Three months ended March 31,
	2026		2025
OPERATING REVENUES:
Passenger	$	6,591	$	5,811
Freight	44		41

Other	614		576
Total operating revenues	7,249		6,428

OPERATING EXPENSES:
Salaries, wages, and benefits	3,297		3,102

Aircraft fuel and related taxes	1,356		1,249
Maintenance materials and repairs	259		292

Landing fees and airport rentals	572		522
Depreciation and amortization	398		396
Other operating expenses	1,037		1,090
Total operating expenses	6,919		6,651

OPERATING INCOME (LOSS)	330		(223)

NON-OPERATING EXPENSES (INCOME):
Interest expense	54		46
Capitalized interest	(12)		(11)
Interest income	(23)		(84)

Other (gains) losses, net	26		18
Total non-operating expenses (income)	45		(31)

INCOME (LOSS) BEFORE INCOME TAXES	285		(192)
PROVISION (BENEFIT) FOR INCOME TAXES	58		(43)

NET INCOME (LOSS)	$	227	$	(149)

NET INCOME (LOSS) PER SHARE, BASIC	$	0.45	$	(0.26)

NET INCOME (LOSS) PER SHARE, DILUTED	$	0.45	$	(0.26)

COMPREHENSIVE INCOME (LOSS)	$	250	$	(148)

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	498		584
Diluted	503		584

See accompanying notes.

Table of Contents

Southwest Airlines Co.

Condensed Consolidated Statement of Stockholders' Equity

(in millions, except per share amounts)

(unaudited)



	Common stock		Capital in excess of par value		Retained earnings		Accumulated other comprehensive income (loss)		Treasury stock			Total
Balance at December 31, 2025	$	888	$	4,322	$	16,388	$	(24)	$	(13,593)		$	7,981
Repurchase of common stock (b)	—		(53)		—		—		(1,217)		(a)	(1,270)
Issuance of common and treasury stock pursuant to Employee stock plans	—		(26)		—		—		12			(14)
Share-based compensation	—		17		—		—		—			17
Cash dividends, $0.18 per share	—		—		(89)		—		—			(89)
Comprehensive income	—		—		227		23		—			250
Balance at March 31, 2026	$	888	$	4,260	$	16,526	$	(1)	$	(14,798)		$	6,875

(a) Includes excise tax incurred on share repurchases, net of issuances.

SEC Form 10-Q filed by Southwest Airlines Company