SOUTHWEST AIRLINES (LUV) Company Report

Southwest Airlines reported record full-year operating revenues of $28.1 billion, net income of $441 million ($0.79 EPS), and adjusted EBIT of $574 million for 2025.
The company returned $2.9 billion to shareholders in 2025 through $2.6 billion in share repurchases and $399 million in dividends, ending the year with $3.2 billion in cash and equivalents.
Southwest expects adjusted EPS of at least $4.00 in 2026 (over 300% growth vs. 2025) and $0.45 in Q1, with full-year ASMs forecast to rise 2–3%.
Major 2025 transformation initiatives included implementing bag fees, basic economy fares, assigned and extra-legroom seating, Rapid Rewards optimization, and free Wi-Fi, contributing to operational enhancements and a #1 WSJ airline ranking.
Operationally, Q4 passenger revenues reached $6.8 billion (up 7.6% YoY), with capacity growth of 5.8% for the quarter and 1.6% for the year.

6 hours ago

Press Release

Southwest Airlines reports Q4 and full year 2025 results and 2026 guidance

LUV

Earnings

Guidance Update

Share Buyback

2025 net income of $441 million ($0.79 EPS) and adjusted net income of $512 million ($0.93 adjusted EPS); adjusted EBIT of $574 million
Record operating revenues of $7.4 billion in Q4 and $28.1 billion for full year 2025
Returned $2.9 billion to shareholders through dividends and share repurchases (completed $2.6 billion repurchases, ~14% of shares)
2026 adjusted EPS guidance of at least $4.00, representing over 300% growth versus 2025

6 hours ago

8-K

Southwest Airlines receives JPMorgan double upgrade

LUV

Guidance Update

JPMorgan upgraded Southwest Airlines from Underweight to Overweight (“double upgrade”) and raised its price target to $60.
The note projects a 2026 EPS outlook of $5, well above the current consensus of about $2.98.
Shares jumped ~4% to $44.52, briefly hitting a 52-week high of $44.61 on January 9, 2026.
The upgrade underscores confidence in Southwest’s business-model overhaul—assigned seating, premium offerings, and changes to baggage and fare policies—as key drivers of revenue and margin improvement.

Jan 9, 2026, 3:14 PM

Barron's

Southwest Airlines partners with Turkish Airlines for transatlantic travel

LUV

New Projects/Investments

Southwest Airlines will partner with Turkish Airlines to launch one-ticket transatlantic journeys between the U.S. and Istanbul in early 2026.
The alliance connects 10 U.S. gateway airports served by Southwest to Turkish Airlines’ network of over 350 global destinations via Istanbul.
Tickets for these seamless itineraries will be sold next year through Turkish Airlines, travel agents, and travel websites.
Beginning January 27, 2026, Southwest will roll out a redesigned cabin experience and offer assigned and extra-legroom seating on its flights.

Dec 17, 2025, 4:00 PM

Press Release

Southwest Airlines plans airport lounge network expansion

LUV

New Projects/Investments

Southwest is shifting from its low-cost model by developing an airport lounge network, with approval for its first lounge at Honolulu’s Daniel K. Inouye International Airport.
The $20 million minimum improvement requirement over five years underscores Southwest’s financial commitment to the lounge project.
Targeted access will focus on premium Chase card members and high-tier Rapid Rewards flyers, aligning with competitors like Delta and United.
As part of its “premiumization” strategy, Southwest ended its ‘two bags fly free’ policy and began charging for checked bags in 2024.
The lounge initiative may drive stock growth opportunities by capturing the luxury travel segment.

Dec 10, 2025, 6:07 PM

CNBC

Southwest expands late summer 2026 schedule with new California and Hawaii routes

LUV

New Projects/Investments

Extended booking window through September 2026 with an all-time high of 139 scheduled departures per peak day in San Diego during August–September 2026
Launching once-daily San Diego–Santa Barbara service on August 4, 2026, and doubling daily roundtrips to Portland, Salt Lake City, and Seattle, effective August 4, 2026
Introducing two California–Hawaii routes: Ontario–Honolulu on June 4, 2026, and Burbank–Honolulu on August 4, 2026
Resuming Long Beach service to Portland and Seattle (six days per week) beginning August 4, 2026

Nov 25, 2025, 6:15 PM

Press Release

Southwest Airlines completes $1.5B debt offering

LUV

Debt Issuance

On November 3, 2025, Southwest Airlines completed a public offering of $1.5 billion aggregate principal amount of senior notes, consisting of $750 million 4.375% Notes due 2028 and $750 million 5.250% Notes due 2035.
The 2028 Notes were priced at 99.951% of par (yield 4.392%, spread + 88 bps over the 3.500% UST due October 15, 2028) and the 2035 Notes at 99.774% of par (yield 5.279%, spread + 128 bps over the 4.250% UST due August 15, 2035).
Settlement occurred on November 3, 2025 (T+5), under an indenture dated February 6, 2024, with a syndicate led by BofA Securities, Citigroup, Goldman Sachs, J.P. Morgan and Morgan Stanley.

Nov 3, 2025, 9:06 PM

8-K

Southwest Airlines prices $1.5 billion senior notes

LUV

Debt Issuance

$1.5 billion underwritten offering of senior notes, split into $750 million of 4.375% Notes due 2028 and $750 million of 5.250% Notes due 2035.
Closing expected Nov. 3, 2025; net proceeds to be used for general corporate purposes, including debt repayment.
Joint book-running managers: BofA Securities, Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley; Comerica as co-manager.

Oct 27, 2025, 9:53 PM

Press Release

Southwest Airlines partners with Hahnair to expand global ticketing reach

LUV

New Projects/Investments

Southwest Airlines has entered an interline agreement with Hahnair to provide ticketing access to 100,000 travel agencies across 190 markets outside the U.S., extending its distribution reach beyond the domestic network.
The partnership enables Southwest tickets to be sold in local currencies in regions where the airline does not operate, enhancing global visibility and consumer access.
Hahnair, a distribution provider with over 25 years of experience, connects more than 350 partner airlines with travel agencies via its HR-169, H1-Air, and X1-Air solutions.

Oct 27, 2025, 8:53 PM

Press Release

Southwest Airlines outlines transformation and financial priorities

LUV

Share Buyback

New Projects/Investments

Southwest has completed key transformation initiatives—bag fees, Basic Economy, cost cuts—and will launch assigned seating on January 27; bag fees generated $350 million in 2025 YTD on a $1 billion run rate.
Operational reliability has improved, as reflected by a #1 ranking in the Wall Street Journal’s composite on-time performance index after recent technology and infrastructure investments.
The carrier expanded interline partnerships with Icelandair, China Airlines, and EVA Air and is exploring Southwest-operated long-haul international service with premium cabins and lounges.
Capital return program: completed a $2.5 billion share buyback by Q3 and secured board authorization for $2 billion over two years; maintains debt/EBITDA of 1–2.5× and a $4.5 billion cash target.
Capacity growth guidance of 1–2% annually remains in place until returns meet targets, reflecting Boeing delivery constraints and a small Q4 lift from extra-legroom seat retrofits.