Logo

LUV

Southwest Airlines Co.

LUV

Southwest Airlines Co. • NYSE
$34.81 ▼ -0.71% (-0.25)
Market Cap $18.00 B
52w High $37.96
52w Low $23.82
Dividend Yield 0.72%
P/E 55.25
Volume 2.53M
Outstanding Shares 517.16M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $6.949B ▼ $1.123B ▼ $54M ▼ 0.777% ▼ $0.07 ▼ $484M ▼
Q2-2025 $7.244B ▲ $1.133B ▲ $213M ▲ 2.94% ▲ $0.4 ▲ $706M ▲
Q1-2025 $6.428B ▼ $1.09B ▲ $-149M ▼ -2.318% ▼ $-0.26 ▼ $239M ▼
Q4-2024 $6.93B ▲ $950M ▼ $261M ▲ 3.766% ▲ $0.45 ▲ $783M ▲
Q3-2024 $6.87B $1.079B $67M 0.975% $0.11 $581M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $3.018B ▼ $28.312B ▼ $20.536B ▼ $7.776B ▼
Q2-2025 $3.839B ▼ $28.712B ▼ $20.712B ▼ $8B ▼
Q1-2025 $8.252B ▼ $33.212B ▼ $23.847B ▲ $9.365B ▼
Q4-2024 $8.725B ▼ $33.75B ▼ $23.4B ▼ $10.35B ▼
Q3-2024 $9.382B $34.847B $24.436B $10.411B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $54M ▼ $287M ▼ $-428M ▲ $-432M ▲ $-573M ▲ $-391M ▼
Q2-2025 $213M ▲ $401M ▼ $-882M ▼ $-4.178B ▼ $-4.659B ▼ $-234M ▼
Q1-2025 $-149M ▼ $860M ▲ $623M ▲ $-858M ▲ $625M ▲ $359M ▲
Q4-2024 $261M ▲ $476M ▲ $73M ▼ $-1.543B ▼ $-994M ▼ $16M ▲
Q3-2024 $67M $113M $458M $-210M $361M $-414M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Cargo and Freight
Cargo and Freight
 $40.00M ▲$40.00M ▲$40.00M ▲$40.00M ▲
Passenger
Passenger
 $6.31Bn ▲$5.81Bn ▼$6.63Bn ▲$6.31Bn ▼
Product and Service Other
Product and Service Other
 $580.00M ▲$580.00M ▲$570.00M ▼$590.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has rebounded strongly from the pandemic and is now comfortably above 2021 levels, but profits are much thinner than they used to be. The company is clearly filling planes and generating solid sales, yet higher costs for labor, fuel, operations, and technology have squeezed margins. Operating and net income over the past few years have been positive but modest, especially relative to the size of the business. This means Southwest is back to making money, but with limited cushion if something goes wrong. The key swing factor going forward is whether all the new initiatives and pricing options can lift profit per seat without pushing costs up even further.

Balance Sheet

Balance Sheet The balance sheet shows a company that still carries a solid cash reserve and a meaningful, but declining, debt load left over from navigating the pandemic. Total assets and shareholder equity have been fairly steady, which suggests no major balance-sheet stress, and debt has been gradually paid down from its peak. Southwest still has a decent financial buffer, but its cash pile has been drawn down as it invests in planes and technology. The financial position looks sound for now, though less conservative than in its pre-pandemic heyday, and future flexibility will depend on how quickly earnings and free cash flow strengthen.

Cash Flow

Cash Flow Cash generation from the core business was quite strong in the immediate recovery years, but it dipped sharply in the most recent period, signaling a tougher environment and some working-capital pressure. At the same time, Southwest is in a heavy investment phase, spending aggressively on its fleet and technology upgrades. As a result, free cash flow has often been negative, meaning more cash is going out the door for investments than is coming in from operations. This is not unusual during a transformation, but it does raise the bar: the company needs its new systems, planes, and product changes to translate into stronger and more stable cash flow in the next stage of the cycle.

Competitive Edge

Competitive Edge Southwest still enjoys one of the strongest brands in U.S. aviation, built on a reputation for friendly service, simple fares, and customer-friendly policies like free checked bags. Its historic edge came from a streamlined model: one aircraft type, point‑to‑point routes, and quick turnarounds that kept costs low and planes productive. Over time, that cost gap versus big legacy airlines has narrowed, and ultra‑low‑cost carriers now crowd the low‑fare end of the market. The December 2022 operational meltdown also dented its reliability image. Even so, its loyal customer base, large domestic network, and culture-driven service remain meaningful advantages. The move toward assigned and premium seating pushes Southwest into more head‑to‑head competition with traditional carriers, which could improve revenue but also tests whether it can keep its “low‑cost, high‑friendliness” identity intact.

Innovation and R&D

Innovation and R&D Southwest is in the midst of one of the biggest technology and product overhauls in its history. It is moving core systems into the cloud, modernizing crew scheduling, and using real‑time data to manage operations more intelligently—all aimed at avoiding past disruptions and running a tighter, more reliable airline. On the customer side, it is shifting away from its long‑standing open seating to assigned seats and introducing premium seating, redeye flights, vacation packages, and international partnerships. These changes are designed to unlock new revenue streams and better match what many travelers say they want. The upside is potentially higher revenue per flight and a more resilient operation; the risk is added complexity, cultural strain, and the possibility of confusing or alienating some long‑time loyal customers if the transition is not managed carefully.

Summary

Southwest today looks like a mature airline in the middle of a major transition. Demand has largely recovered and revenue is strong, but profitability and free cash flow are still under pressure, leaving less room for error than in past cycles. The balance sheet remains a relative strength, with solid liquidity and a manageable, declining debt load, though continued investment is eating into cash. Competitively, the airline still benefits from a powerful brand and loyal customer base, but its historical cost and simplicity advantages are not as overwhelming as they once were. The company is betting heavily on technology upgrades and a revamped product—assigned seating, premium options, expanded offerings—to reset its economics and appeal. The story from here hinges on execution: can Southwest turn this investment wave into higher, more stable margins and cash flow while preserving what has long made it distinctive in the crowded U.S. airline market?

NEWS

November 25, 2025 · 1:15 PM UTC

THE GOLDEN STATE GROWTH GOES ON: BOOK ON SOUTHWEST TODAY FOR LATE SUMMER 2026

Read more

November 20, 2025 · 10:35 AM UTC

SOUTHWEST AIRLINES DECLARES 187th QUARTERLY DIVIDEND

Read more

November 5, 2025 · 4:00 PM UTC

SOUTHWEST ANNOUNCES DANIELLE COLLINS AS AIRLINE'S NEW HEAD OF INVESTOR RELATIONS

Read more

November 4, 2025 · 3:02 PM UTC

SOUTHWEST AIRLINES AND PHILIPPINE AIRLINES LAUNCH PARTNERSHIP

Read more

October 28, 2025 · 8:00 AM UTC

SWIPE, EARN, AND FLY WITH SOUTHWEST AIRLINES' NEW RAPID REWARDS DEBIT CARD

Read more