Quarterly ResultJul 23, 2026, 04:17 PM
Southwest Airlines Q2 Net Income Up 9.4% to $233M; Revenue $8.43B
AI Summary
Southwest Airlines reported a 9.4% increase in net income to $233 million for Q2 2026, with total operating revenues climbing to $8.432 billion. Basic EPS reached $0.48, reflecting strong financial performance. The company recorded a $285 million breakage revenue reversal in Q2 2026 due to updated flight credit redemption estimates, which reduced net income by $185 million. Cash and cash equivalents improved, and the company continued share repurchases.
Key Highlights
- Net income for Q2 2026 increased 9.4% to $233 million from $213 million in Q2 2025.
- Total operating revenues for Q2 2026 rose to $8.432 billion from $7.244 billion in Q2 2025.
- Basic EPS for Q2 2026 was $0.48, up from $0.40 in Q2 2025.
- A $285 million breakage revenue reversal was recorded in Q2 2026, impacting net income by $(185) million.
- Cash and cash equivalents stood at $3.791 billion as of June 30, 2026, up from $3.231 billion at Dec 31, 2025.
- Net cash provided by operating activities for H1 2026 was $1.947 billion, up from $1.261 billion in H1 2025.
- The company repurchased $1.250 billion of common stock in H1 2026.
- Passenger ancillary revenue significantly increased due to new products like bag fees and assigned seating.
Price Impact
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