SOUTHWEST AIRLINES CO

Overview

Southwest Airlines Co. is a U.S. passenger airline that provides scheduled air transportation, primarily through a point-to-point network. Its services include passenger flights, freight transportation, the Rapid Rewards loyalty program, and vacation packages.[1]+2 The company describes its purpose as connecting people to what is important in their lives through friendly, reliable, low-cost air travel.[4]

Southwest’s network spans the United States and near-international markets. At December 31, 2025, it served 117 destinations across 42 U.S. states, the District of Columbia, Puerto Rico, and 10 near-international countries, operating 803 Boeing 737 aircraft.[1] For fiscal 2025, operating revenue was $28.063 billion, and the company reported 72,790 active full-time-equivalent employees at year-end, excluding employees on leave.[5][6] Southwest began service in 1971, initially connecting Dallas, Houston, and San Antonio.[1] [1]+6

Products & services

Southwest’s fare products are Basic, Choice, Choice Preferred and Choice Extra. Basic is the lowest-priced option, generally nonrefundable and nonchangeable, with seat assignment at check-in or paid advance seat selection. Choice Extra includes advance seat selection—including preferred or extra-legroom seats when available—two checked bags, early boarding in groups 1–2, and 14 Rapid Rewards points per dollar of base fare.[7]+2

The airline offers assigned seating in Standard, Preferred and Extra Legroom categories, with boarding groups determined by factors including seat location, fare and loyalty status; eligible customers can also purchase Priority Boarding.[10][11] Baggage and loyalty benefits vary by fare and customer status: for example, Choice Extra includes two checked bags, while A-List Preferred members receive two free checked bags and A-List members and Rapid Rewards credit-card members receive one. Eligible fares earn Rapid Rewards points at fare-specific rates; points do not expire and can be redeemed for available seats without blackout dates.[12][3]

Onboard offerings include WiFi, inflight entertainment, food and beverages, and cabin features such as USB-A/USB-C power, larger overhead bins and updated RECARO seats.[13]+3 Business and group-travel services include Southwest Business Meetings, Southwest Groups, Business Assist, SWABIZ and Business TravelTrack, supporting group bookings, business travel reservations, reporting and data sharing.[17]

Southwest does not separately disclose revenue shares for individual fares or ancillary products. Its 2026 second-quarter filing reported passenger-revenue growth of 16.9%, attributing it primarily to more customers purchasing higher fare categories and new ancillary products, including first- and second-bag fees and assigned and extra-legroom seating; this is a growth rate, not a product-specific revenue percentage.[18] [7]+16

Geographic presence

Southwest’s FY2025 network served 117 destinations across 42 U.S. states, Washington, D.C., Puerto Rico, and 10 near-international countries: Mexico, Jamaica, The Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos [1]. The company’s current profile describes service at 121 airports across 12 countries [19].

Southwest’s corporate headquarters is near Dallas Love Field. Its long-term-leased aircraft maintenance centers are at Dallas Love Field, Houston Hobby, Phoenix Sky Harbor, Chicago Midway, Atlanta, Denver, and Orlando; it also has an aircraft maintenance facility at Baltimore–Washington International Airport [20]. The FY2025 filing does not provide revenue or employee counts by geographic region or country; it reports the airline as one operating segment and gives employee totals by job function [21][6]. [1]+5

Business segments

Southwest Airlines reports one operating and reportable segment: air transportation for passengers and cargo. Its 2025 Form 10-K describes the business as managed as a single segment, with integrated revenue pricing, a common Boeing 737-series fleet, and one route-scheduling system.[21] The company continued to report a single reportable segment in its Q2 2026 filing.[22][23]

For the year ended December 31, 2025, Southwest reported operating revenue by category rather than by business segment. Passenger revenue was $25,535 million (approximately 91.0% of operating revenue), freight revenue was $171 million (approximately 0.6%), and other revenue was $2,357 million (approximately 8.4%), out of $28,063 million total. These percentages are calculated from the reported revenue amounts; the categories are not separately reported business segments.[5]+3 [21]+6

Company history

Southwest Airlines traces its origins to an airline concept developed by Herb Kelleher and Rollin King in 1966; Air Southwest Co. was incorporated on March 15, 1967, and took the name Southwest Airlines Co. in 1971.[24] Its first revenue flight departed Dallas Love Field on June 18, 1971, beginning service among Dallas, Houston, and San Antonio.[25]

Herb Kelleher became chairman in 1978 and later served as president and CEO from 1981 to 2001.[24] In 1982, Southwest expanded west, adding Las Vegas, Phoenix, and San Diego; it acquired Morris Air in 1994 and launched its website in 1995.[26]+2 Southwest completed its acquisition of AirTran in 2011 and began international flights in 2014.[29][30] [24]+6

Sources

• SOUTHWEST AIRLINES CO — Full financial report (2025 Y)
  14 citations

  [1][2][3][5][6][7][8][10][12][13][14][17][20][21]
• www.southwest.com[4]
• www.southwest.com[9]
• www.southwest.com[11]
• www.southwest.com[15]
• www.southwest.com[16]
• SOUTHWEST AIRLINES CO — Full financial report (2026 Q 2)
  3 citations

  [18][22][23]
• investors.southwest.com[19]
• history.southwest.com[24]
• www.swamedia.com[25]
• www.swamedia.com[26]
• www.swamedia.com[27]
• history.southwest.com[28]
• swamedia.com[29]
• www.swamedia.com[30]