$LUV

SOUTHWEST AIRLINES CO

CIK:0000092380|SEC Filings

Condensed Consolidated Statement of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
OPERATING REVENUES:
Total operating revenues	$ 8,432.0	$ 7,244.0	$ 15,682.0	$ 13,672.0
OPERATING EXPENSES:
Salaries, wages, and benefits	3,499.0	3,262.0	6,797.0	6,364.0
Aircraft fuel and related taxes	2,215.0	1,326.0	3,571.0	2,575.0
Maintenance materials and repairs	294.0	331.0	552.0	623.0
Landing fees and airport rentals	636.0	567.0	1,208.0	1,090.0
Depreciation and amortization	402.0	400.0	800.0	795.0
Other operating expenses	1,101.0	1,133.0	2,139.0	2,223.0
Total operating expenses	8,147.0	7,019.0	15,067.0	13,670.0
OPERATING INCOME	285.0	225.0	615.0	2.0
NON-OPERATING EXPENSES (INCOME):
Interest expense	64.0	39.0	118.0	85.0
Capitalized interest	(12.0)	(13.0)	(25.0)	(24.0)
Interest income	(33.0)	(54.0)	(57.0)	(138.0)
Other (gains) losses, net	(40.0)	(27.0)	(13.0)	(9.0)
Total non-operating expenses (income)	(21.0)	(55.0)	23.0	(86.0)
INCOME BEFORE INCOME TAXES	306.0	280.0	592.0	88.0
PROVISION FOR INCOME TAXES	73.0	67.0	132.0	24.0
NET INCOME	$ 233.0	$ 213.0	$ 460.0	$ 64.0
NET INCOME PER SHARE, BASIC (in dollars per share)	$ 0.48	$ 0.40	$ 0.93	$ 0.11
NET INCOME PER SHARE, DILUTED (in dollars per share)	$ 0.47	$ 0.39	$ 0.92	$ 0.11
COMPREHENSIVE INCOME	$ 256.0	$ 202.0	$ 506.0	$ 54.0
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	489	538	494	561
Diluted (in shares)	493	541	498	564
Passenger
OPERATING REVENUES:
Total operating revenues	$ 7,745.0	$ 6,627.0	$ 14,337.0	$ 12,438.0
Freight
OPERATING REVENUES:
Total operating revenues	50.0	44.0	93.0	86.0
Other
OPERATING REVENUES:
Total operating revenues	$ 637.0	$ 573.0	$ 1,252.0	$ 1,148.0

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 233	$ 213	$ 460	$ 64
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	402	400	800	795
Impairment of long-lived assets	0	8	0	8
Deferred income taxes	60	66	117	23
Gain on sale-leaseback transactions	0	0	0	(3)
Changes in certain assets and liabilities:
Accounts and other receivables	37	90	(56)	146
Other assets	(54)	212	(115)	357
Accounts payable and accrued liabilities	23	(95)	(56)	(220)
Air traffic liability	(65)	(606)	1,021	55
Other liabilities	(53)	28	(130)	(35)
Cash collateral provided to derivative counterparties	0	0	0	(22)
Other, net	(53)	85	(94)	93
Net cash provided by operating activities	530	401	1,947	1,261
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(818)	(660)	(1,448)	(1,187)
Proceeds from sale of property and equipment	258	25	450	51
Proceeds from sale-leaseback transactions	0	0	0	24
Purchases of short-term investments	0	(319)	0	(370)
Proceeds from sales of short-term and other investments	0	72	0	1,226
Other, net	0	0	(6)	(3)
Net cash used in investing activities	(560)	(882)	(1,004)	(259)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt	1,000	0	1,500	0
Proceeds from Employee stock plans	15	15	31	32
Repurchase of common stock	0	(1,500)	(1,250)	(2,250)
Payments of long-term debt and finance lease obligations	(431)	(2,592)	(437)	(2,598)
Payments of cash dividends	(88)	(103)	(181)	(210)
Other, net	(3)	2	(46)	(10)
Net cash provided by (used in) financing activities	493	(4,178)	(383)	(5,036)
NET CHANGE IN CASH AND CASH EQUIVALENTS	463	(4,659)	560	(4,034)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	3,328	8,134	3,231	7,509
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,791	3,475	3,791	3,475
CASH PAYMENTS FOR:
Interest, net of amount capitalized	92	53	93	64
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS:
Right-of-use assets acquired or modified under operating leases	$ 11	$ 20	$ 17	$ 34

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 3,791	$ 3,231
Accounts and other receivables	1,218	1,149
Inventories of parts and supplies, at cost	917	775
Prepaid expenses and other current assets	556	490
Total current assets	6,482	5,645
Property and equipment, at cost:
Flight equipment	26,198	26,293
Ground property and equipment	9,485	9,163
Deposits on flight equipment purchase contracts	616	401
Assets constructed for others	88	88
Property and equipment, at cost	36,387	35,945
Less allowance for depreciation and amortization	15,745	15,700
Property and equipment, net	20,642	20,245
Goodwill	970	970
Operating lease right-of-use assets	953	1,089
Other assets	1,075	1,112
Total assets	30,122	29,061
Current liabilities:
Accounts payable	2,072	1,991
Accrued liabilities	2,247	2,349
Current operating lease liabilities	283	312
Air traffic liability	6,510	5,945
Current maturities of long-term debt	2,156	324
Total current liabilities	13,268	10,921
Long-term debt less current maturities	3,790	4,577
Air traffic liability - noncurrent	1,674	1,219
Deferred income taxes	2,421	2,289
Noncurrent operating lease liabilities	660	768
Other noncurrent liabilities	1,227	1,306
Stockholders' equity:
Common stock	888	888
Capital in excess of par value	4,294	4,322
Retained earnings	16,672	16,388
Accumulated other comprehensive income (loss)	22	(24)
Treasury stock, at cost	(14,794)	(13,593)
Total stockholders' equity	7,082	7,981
Total liabilities and stockholders' equity	$ 30,122	$ 29,061