Southwest Airlines Co

Company facts

Industry

Air Transportation, Scheduled

Headquarters

Dallas, Texas

Most recent report

8-K, filed Nov 2, 2026

Incorporated

Texas

Filings on record

1,004+ filings

On EDGAR

CIK 92380

Fiscal year ends

December

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 13 sections worth reading, with 1 positive, 13 notable, and 3 negative flags.

• Legal Proceedings (Item 1)

  Large breakage revenue reversal, new term loan, big buyback, and fleet commitments all need attention.
  Notable

  • Repurchased 28M shares in Q1 2026 for $1.25B in nine months, funded partly by new debt.
  • New $1.5B term loan drawn in 2026; total debt (current + long-term) rose to $5.9B from $4.9B.
  • New $2.0B revolving credit facility signed August 2026, maturing 2031; no amounts drawn.
  • Sale-leaseback of aircraft in Q3 2026 for $212M proceeds, with a $118M gain recognized.
  Negative

  • Reversed $285M of prior breakage revenue in Q2 2026, cutting nine-month net income by $187M.

• Unregistered Sales and Repurchases (Item 2)

  Full MD&A with record revenue, unit revenue, yield; fuel cost surge; buyback pause; new debt.
  Positive

  • Record Q3 2026 operating revenue of $8.4B, up 21.2% YoY; all-time record unit revenues and yield.
  Notable

  • First-ever lounge network announced with Chase; co-brand agreement extended; premium card coming 2027.
  • Prepaid $426M PSP3 loan in April 2026; $3.6B unrestricted cash; $15.8B unencumbered assets.
  • No share repurchases in Q2 or Q3 2026 after $1.25B in Q1; $450M remains authorized.

• Defaults on Senior Securities (Item 3)

  Fuel hedging ended; full exposure to price swings quantified.
  Notable

  • No cash collateral held from or provided to derivative counterparties as of Sep 30, 2026.
  • No cash reserves held for credit card processor risk as of Sep 30, 2026.
  Negative

  • Fuel hedging program discontinued in 2025; all remaining contracts terminated in Q2 2025.
  • Full exposure to fuel price swings; a 1-cent change impacts expense by $5.7M in Q4 2026.

• Legal Proceedings (Item 1)

  Multiple active appeals and a new derivative suit over ending Bags Fly Free policy.
  Notable

  • California meal-period class action won summary judgment Jul 2025; plaintiffs appealed Sep 2025. Reply brief due Oct 2026.
  • MAX aircraft breach-of-contract class action dismissed for lack of standing Jun 2025; affirmed on appeal Apr 2026. Case concluded.
  • Securities class action dismissed with prejudice May 2026; plaintiffs appealed same day. Briefing expected to complete Dec 2026/Jan 2027.
  • Special Litigation Committee rejected derivative demands in Sep 2024; motion to dismiss filed Jun 2025. Limited discovery ongoing under Texas law.

What changed: Sep 2026 vs. Jun 2026

About 10% of LUV's Sep 2026 10-Q is new information. 35 paragraphs were added, 143 changed, and 46 removed. Below are the most important lines SECSift identified.

• Item 1 63
• Item 2 62
• Item 6 4
• Part I 4
• Item 3 4
• Item 4 3