Southwest Airlines
LUV NYSE Passenger Airlines Financials FY2016–FY2025
Southwest Airlines' revenue rose 2.1% to $28.1 billion in fiscal 2025. Its operating margin was 1.5%, up from 1.2% a year earlier. Free cash flow was −$831 million. It paid out $2.9 billion in dividends and buybacks. The diluted share count fell 13.2%.
What Southwest Airlines does
Southwest Airlines is a passenger airline that flies within the United States and to nearby international destinations. As of December 31, 2025, it had 803 Boeing 737 aircraft and served 117 destinations in 42 states, the District of Columbia, Puerto Rico and ten near-international countries, including Mexico, Jamaica and Costa Rica. Unlike most major U.S. airlines, which send passengers through central hub cities, it mainly flies point-to-point, connecting cities directly.
Southwest is managed as a single operating segment that carries passengers and cargo. It sells several fare types, from Basic, generally its lowest, to higher-priced Choice Extra. In 2025 it began charging bag fees on most fares, and in January 2026 it began offering assigned and extra legroom seating. Members of its Rapid Rewards loyalty program earn points on the fares they buy. Southwest names other major domestic airlines, regional and new entrant airlines, charter operators, surface transportation, and alternatives such as videoconferencing as its main competitors.
Its low-cost approach relies on flying one aircraft type, the Boeing 737, and on using less congested secondary or downtown airports such as Dallas Love Field and Chicago Midway. It had 465 firm orders for Boeing MAX aircraft to be delivered through 2031. Pay and benefits were its largest cost, approximately 46.9 percent of operating expenses in 2025. As of December 31, 2025, it had 72,790 active full-time equivalent employees, and approximately 84 percent of its employees were represented by labor unions.
- Legal name
- SOUTHWEST AIRLINES CO.
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 5, 2026
- Accession · CIK
- 0000092380-26-000004
0000092380
Revenue and margins
Southwest Airlines had $28.1B of revenue in fiscal 2025, up 2.1% on the year before.
Net income and earnings per share
From fiscal 2016 to 2025, diluted EPS grew −15.1% a year. Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was −$831M in fiscal 2025, −3.0% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Southwest Airlines returned $2.9B to shareholders in fiscal 2025. The diluted share count fell 13.2%.
Value Southwest Airlines yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of −$1.8B and divides by 558.0M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 20.4x · peers 12.1x · sector 26.0x.
Balance sheet
Cash, debt and the ratios that show how comfortably Southwest Airlines can carry it.
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $15.5B | $12.3B | $11.5B | $8.7B | $3.2B |
| Debt incl. finance leases | $10.8B | $8.3B | $8.1B | $6.8B | $5.0B |
| Net debt / EBITDA | −1.6x | −1.7x | −1.9x | −1.0x | 0.9x |
| Debt / equity | 1.0x | 0.8x | 0.8x | 0.7x | 0.6x |
| Interest coverage | 5.1x | 3.0x | 0.9x | 1.3x | 2.6x |
| Current ratio | 2.0x | 1.4x | 1.1x | 0.9x | 0.5x |
| Quick ratio | 2.0x | 1.4x | 1.1x | 0.9x | 0.5x |
| Total assets | $36.3B | $35.4B | $36.5B | $33.8B | $29.1B |
| Total liabilities | $25.9B | $24.7B | $26.0B | $23.4B | $21.1B |
| Shareholders' equity | $10.4B | $10.7B | $10.5B | $10.4B | $8.0B |
| Net debt (− = net cash) | −$4.7B | −$4.0B | −$3.4B | −$1.9B | $1.8B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$0.3M
2 insiders
Of sales under plans
0%
$0.0M
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✕ | ✕ | ✓ |
| Cash from operations exceeds net income | ✓ | ✕ | ✓ |
| Debt fell relative to assets | ✓ | ✓ | ✓ |
| Current ratio rose | ✕ | ✕ | ✕ |
| Share count didn't rise | ✓ | ✕ | ✓ |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | ✓ | ✓ | ✓ |
| F-score | 6 / 8 | 4 / 8 | 7 / 8 |
| Accruals ratio | −7.5% | 0.0% | −4.5% |
| Altman Z'' | 2.23 | 1.91 | 1.14 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Southwest Airlines LUV | $20.6B | 2.1% | 1.5% | −3.0% | 3.7% | 20.4x | 7 | |
| American Airlines Group AAL | $8.0B | 0.8% | 2.7% | −1.2% | 5.7% | — | 5 | Compare → |
| Alaska Air Group ALK | $3.8B | 21.3% | 2.1% | 6.6% | 2.9% | — | 5 | Compare → |
| United Airlines UAL | $32.1B | 3.5% | 8.0% | 4.3% | 15.3% | 9.0x | 6 | Compare → |
| Delta Air Lines DAL | $50.6B | 2.8% | 9.2% | 6.1% | 16.0% | 15.3x | 7 | Compare → |
10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $20.4B | $21.2B | $22.0B | $22.4B | $9.0B | $15.8B | $23.8B | $26.1B | $27.5B | $28.1B |
| Operating income | $3.5B | $3.4B | $3.2B | $3.0B | −$3.8B | $1.7B | $1.0B | $224M | $321M | $428M |
| Interest expense | $122M | $114M | $131M | $118M | $212M | $336M | $340M | $259M | $249M | $167M |
| Pretax income | $3.5B | $3.3B | $3.2B | $3.0B | −$4.3B | $1.3B | $728M | $633M | $598M | $563M |
| Income tax | $1.3B | −$92.0M | $699M | $657M | −$1.2B | $348M | $189M | $168M | $133M | $122M |
| Net income | $2.2B | $3.4B | $2.5B | $2.3B | −$3.1B | $977M | $539M | $465M | $465M | $441M |
| Diluted EPS | $3.45 | $5.57 | $4.29 | $4.27 | −$5.44 | $1.61 | $0.87 | $0.76 | $0.76 | $0.79 |
| Diluted shares | 0.63B | 0.60B | 0.57B | 0.54B | 0.57B | 0.61B | 0.64B | 0.64B | 0.64B | 0.56B |
| Cash flow | ||||||||||
| Cash from operations | $4.3B | $3.9B | $4.9B | $4.0B | −$1.1B | $2.3B | $3.8B | $3.2B | $462M | $1.8B |
| Capital expenditure | $2.0B | $2.1B | $1.9B | $1.0B | $515M | $505M | $3.9B | $3.5B | $2.1B | $2.7B |
| Free cash flow | $2.3B | $1.8B | $3.0B | $3.0B | −$1.6B | $1.8B | −$134M | −$356M | −$1.6B | −$831M |
| Depreciation and amortization | $1.2B | $1.2B | $1.2B | $1.2B | $1.3B | $1.3B | $1.4B | $1.5B | $1.7B | $1.6B |
| Stock-based compensation | $33.0M | $37.0M | $46.0M | $55.0M | $17.0M | $58.0M | $84.0M | $86.0M | $45.0M | $99.0M |
| Acquisitions | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Share buybacks | $1.8B | $1.6B | $2.0B | $2.0B | $451M | $0.0M | $0.0M | $0.0M | $250M | $2.6B |
| Dividends paid | $222M | $274M | $332M | $372M | $188M | $0.0M | $0.0M | $428M | $430M | $399M |
| Dividends and buybacks | $2.0B | $1.9B | $2.3B | $2.4B | $639M | $0.0M | $0.0M | $428M | $680M | $2.9B |
| Balance sheet | ||||||||||
| Cash and short-term investments | $3.3B | $3.3B | $3.7B | $4.1B | $13.3B | $15.5B | $12.3B | $11.5B | $8.7B | $3.2B |
| Total debt | $3.4B | $3.7B | $3.4B | $2.7B | $10.4B | $10.8B | $8.1B | $8.0B | $6.7B | $4.9B |
| Finance lease liabilities | $0.0M | $0.0M | $845M | $627M | $542M | $459M | $189M | $104M | $91.0M | $78.0M |
| Current assets | $4.5B | $4.8B | $5.0B | $6.0B | $15.2B | $18.0B | $14.8B | $14.0B | $11.3B | $5.6B |
| Current liabilities | $6.8B | $6.9B | $7.9B | $9.0B | $7.5B | $9.2B | $10.4B | $12.3B | $12.3B | $10.9B |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Property and equipment, net | $17.0B | $18.5B | $19.5B | $17.0B | $15.8B | $14.8B | $17.3B | $19.4B | $19.1B | $20.2B |
| Total assets | $23.3B | $25.1B | $26.2B | $25.9B | $34.6B | $36.3B | $35.4B | $36.5B | $33.8B | $29.1B |
| Total liabilities | $15.5B | $15.5B | $16.4B | $16.1B | $25.7B | $25.9B | $24.7B | $26.0B | $23.4B | $21.1B |
| Shareholders' equity | $7.8B | $9.6B | $9.9B | $9.8B | $8.9B | $10.4B | $10.7B | $10.5B | $10.4B | $8.0B |
| Margins | ||||||||||
| Operating margin | 17.2% | 16.1% | 14.6% | 13.2% | −42.2% | 10.9% | 4.3% | 0.9% | 1.2% | 1.5% |
| EBITDA margin | 23.2% | 21.9% | 20.1% | 18.6% | −28.3% | 19.0% | 9.9% | 6.7% | 7.2% | 7.1% |
| Net margin | 10.7% | 15.9% | 11.2% | 10.3% | −34.0% | 6.2% | 2.3% | 1.8% | 1.7% | 1.6% |
| FCF margin | 11.0% | 8.5% | 13.5% | 13.2% | −18.2% | 11.5% | −0.6% | −1.4% | −5.8% | −3.0% |
| Returns | ||||||||||
| Return on capital | 30.2% | 38.1% | 25.5% | 25.6% | −42.0% | 21.9% | 12.2% | 2.4% | 3.2% | 3.7% |
| Return on capital employed | 23.2% | 19.6% | 17.5% | 16.8% | −17.3% | 6.4% | 3.9% | 0.9% | 1.4% | 2.2% |
| Return on equity | 30.0% | 38.5% | 25.3% | 23.4% | −32.9% | 10.1% | 5.1% | 4.4% | 4.5% | 4.8% |
| Return on assets | 9.8% | 13.9% | 9.6% | 8.8% | −10.2% | 2.8% | 1.5% | 1.3% | 1.3% | 1.4% |
| Growth | ||||||||||
| Revenue growth | 3.1% | 3.7% | 3.8% | 2.1% | −59.7% | 74.5% | 50.8% | 9.6% | 5.3% | 2.1% |
| Net income growth | 0.1% | 53.8% | −26.6% | −6.7% | −233.7% | — | −44.8% | −13.7% | 0.0% | −5.2% |
| EPS growth | 5.5% | 61.5% | −23.0% | −0.5% | −227.4% | — | −46.0% | −12.6% | 0.0% | 4.0% |
| FCF growth | 88.4% | −19.9% | 64.5% | −0.4% | −155.5% | — | −107.4% | — | — | — |
| Share count change | −5.4% | −4.7% | −4.8% | −6.1% | 4.8% | 7.8% | 5.4% | −0.3% | 0.5% | −13.2% |
| Financial health | ||||||||||
| Net debt / EBITDA | 0.0x | 0.1x | −0.1x | −0.3x | — | −1.6x | −1.7x | −1.9x | −1.0x | 0.9x |
| Debt / equity | 0.4x | 0.4x | 0.3x | 0.3x | 1.2x | 1.0x | 0.8x | 0.8x | 0.7x | 0.6x |
| Interest coverage | 28.9x | 29.9x | 24.5x | 25.1x | −18.0x | 5.1x | 3.0x | 0.9x | 1.3x | 2.6x |
| Current ratio | 0.7x | 0.7x | 0.6x | 0.7x | 2.0x | 2.0x | 1.4x | 1.1x | 0.9x | 0.5x |
| Quick ratio | 0.7x | 0.7x | 0.6x | 0.7x | 2.0x | 2.0x | 1.4x | 1.1x | 0.9x | 0.5x |
| Capital allocation | ||||||||||
| Capex / revenue | 10.0% | 10.0% | 8.8% | 4.6% | 5.7% | 3.2% | 16.5% | 13.5% | 7.5% | 9.5% |
| Stock comp / revenue | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% | 0.4% | 0.4% | 0.3% | 0.2% | 0.4% |
| Payouts / FCF | 87.5% | 103.8% | 78.5% | 80.1% | — | 0.0% | — | — | — | — |
| Quality scores | ||||||||||
| Piotroski F-score | 6.0 | 7.0 | 5.0 | 6.0 | 2.0 | 6.0 | 5.0 | 6.0 | 4.0 | 7.0 |
| Altman Z'' | 2.5 | 2.8 | 2.7 | 2.9 | 2.5 | 3.8 | 3.0 | 2.2 | 1.9 | 1.1 |
| Accruals ratio | −9.5% | −2.4% | −9.5% | −6.5% | −6.4% | −3.8% | −9.1% | −7.5% | 0.0% | −4.5% |
Source: SEC EDGAR XBRL filings (CIK 0000092380). Data updated October 22, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.