# SOUTHWEST AIRLINES CO

Summary updated: 2026-10-02T11:36:38.088241Z
Canonical: https://finbar.com/research/companies/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](https://app.finbar.com/go?id=P45046704)[2](https://app.finbar.com/go?id=P53565411)[3](https://app.finbar.com/go?id=P93870123) The company describes its purpose as connecting people to what is important in their lives through friendly, reliable, low-cost air travel. [4](https://www.southwest.com/about-southwest/)

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](https://app.finbar.com/go?id=P45046704) 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](https://app.finbar.com/go?id=T70873)[6](https://app.finbar.com/go?id=P120389271) Southwest began service in 1971, initially connecting Dallas, Houston, and San Antonio. [1](https://app.finbar.com/go?id=P45046704)
[1](https://app.finbar.com/go?id=P45046704)[2](https://app.finbar.com/go?id=P53565411)[3](https://app.finbar.com/go?id=P93870123)[4](https://www.southwest.com/about-southwest/)[5](https://app.finbar.com/go?id=T70873)[6](https://app.finbar.com/go?id=P120389271)[4](https://www.southwest.com/about-southwest/)

## 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](https://app.finbar.com/go?id=P56935335)[8](https://app.finbar.com/go?id=P117321666)[9](https://www.southwest.com/airfare-types-benefits/)

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](https://app.finbar.com/go?id=P19924008)[11](https://www.southwest.com/customer-enhancements/assigned-seating/) 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](https://app.finbar.com/go?id=P63551858)[3](https://app.finbar.com/go?id=P93870123)

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](https://app.finbar.com/go?id=P36951196)[14](https://app.finbar.com/go?id=P17410767)[15](https://www.southwest.com/inflight-entertainment-portal/)[16](https://www.southwest.com/food-and-beverage/) 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](https://app.finbar.com/go?id=P104607556)

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](https://app.finbar.com/go?id=P142660076)
[7](https://app.finbar.com/go?id=P56935335)[8](https://app.finbar.com/go?id=P117321666)[9](https://www.southwest.com/airfare-types-benefits/)[10](https://app.finbar.com/go?id=P19924008)[11](https://www.southwest.com/customer-enhancements/assigned-seating/)[12](https://app.finbar.com/go?id=P63551858)[3](https://app.finbar.com/go?id=P93870123)[13](https://app.finbar.com/go?id=P36951196)[14](https://app.finbar.com/go?id=P17410767)[15](https://www.southwest.com/inflight-entertainment-portal/)[16](https://www.southwest.com/food-and-beverage/)[17](https://app.finbar.com/go?id=P104607556)[18](https://app.finbar.com/go?id=P142660076)[9](https://www.southwest.com/airfare-types-benefits/)[11](https://www.southwest.com/customer-enhancements/assigned-seating/)[15](https://www.southwest.com/inflight-entertainment-portal/)[16](https://www.southwest.com/food-and-beverage/)

## 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](https://app.finbar.com/go?id=P45046704). The company’s current profile describes service at 121 airports across 12 countries [19](https://investors.southwest.com/company-information).

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](https://app.finbar.com/go?id=P16405431). 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](https://app.finbar.com/go?id=P38564145)[6](https://app.finbar.com/go?id=P120389271).
[1](https://app.finbar.com/go?id=P45046704)[19](https://investors.southwest.com/company-information)[20](https://app.finbar.com/go?id=P16405431)[21](https://app.finbar.com/go?id=P38564145)[6](https://app.finbar.com/go?id=P120389271)[19](https://investors.southwest.com/company-information)

## 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](https://app.finbar.com/go?id=P38564145) The company continued to report a single reportable segment in its Q2 2026 filing. [22](https://app.finbar.com/go?id=P142659894)[23](https://app.finbar.com/go?id=P142659895)

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](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)
[21](https://app.finbar.com/go?id=P38564145)[22](https://app.finbar.com/go?id=P142659894)[23](https://app.finbar.com/go?id=P142659895)[5](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)[5](https://app.finbar.com/go?id=T70873)

## 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](https://history.southwest.com/our-stories/herb-rollin-the-birth-of-southwest-airlines/) Its first revenue flight departed Dallas Love Field on June 18, 1971, beginning service among Dallas, Houston, and San Antonio. [25](https://www.swamedia.com/news-and-stories/news-release/southwest-airlines-celebrates-50-years-of-giving-people-the-freedom-to-fly-by-un-MCUQXD6ZK36ZDD3OPCN4JPTVX7L4)

Herb Kelleher became chairman in 1978 and later served as president and CEO from 1981 to 2001. [24](https://history.southwest.com/our-stories/herb-rollin-the-birth-of-southwest-airlines/) 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](https://www.swamedia.com/southwest-stories/success-in-the-west-40-years-in-the-making-MC47PS6N4SKZDUTD7KJ6KJ6OUNXU) [27](https://www.swamedia.com/southwest-stories/southwest-airlines-the-original-luv-airline-MCAUIBWSLOBJGRRGFMOGE7K5JG74) [28](https://history.southwest.com/our-stories/tickets-please-southwest-in-the-internet-age/) Southwest completed its acquisition of AirTran in 2011 and began international flights in 2014. [29](https://swamedia.com/releases/release-35e32e1b4d43427a9ded112a71e8f687-Southwest-Airlines-Reports-November-Traffic-9?query=southwest+cargo) [30](https://www.swamedia.com/southwest-stories/five-years-of-international-southwest-style-MCZPTI3JBXLFEFZCPALQLRMFVWE4)
[24](https://history.southwest.com/our-stories/herb-rollin-the-birth-of-southwest-airlines/)[25](https://www.swamedia.com/news-and-stories/news-release/southwest-airlines-celebrates-50-years-of-giving-people-the-freedom-to-fly-by-un-MCUQXD6ZK36ZDD3OPCN4JPTVX7L4)[26](https://www.swamedia.com/southwest-stories/success-in-the-west-40-years-in-the-making-MC47PS6N4SKZDUTD7KJ6KJ6OUNXU)[27](https://www.swamedia.com/southwest-stories/southwest-airlines-the-original-luv-airline-MCAUIBWSLOBJGRRGFMOGE7K5JG74)[28](https://history.southwest.com/our-stories/tickets-please-southwest-in-the-internet-age/)[29](https://swamedia.com/releases/release-35e32e1b4d43427a9ded112a71e8f687-Southwest-Airlines-Reports-November-Traffic-9?query=southwest+cargo)[30](https://www.swamedia.com/southwest-stories/five-years-of-international-southwest-style-MCZPTI3JBXLFEFZCPALQLRMFVWE4)

## Sources

1. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P45046704)
2. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P53565411)
3. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P93870123)
4. [www.southwest.com](https://www.southwest.com/about-southwest/)
5. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=T70873)
6. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P120389271)
7. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P56935335)
8. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P117321666)
9. [www.southwest.com](https://www.southwest.com/airfare-types-benefits/)
10. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P19924008)
11. [www.southwest.com](https://www.southwest.com/customer-enhancements/assigned-seating/)
12. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P63551858)
13. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P36951196)
14. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P17410767)
15. [www.southwest.com](https://www.southwest.com/inflight-entertainment-portal/)
16. [www.southwest.com](https://www.southwest.com/food-and-beverage/)
17. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P104607556)
18. [SOUTHWEST AIRLINES CO — Full financial report (2026 Q 2)](https://app.finbar.com/go?id=P142660076)
19. [investors.southwest.com](https://investors.southwest.com/company-information)
20. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P16405431)
21. [SOUTHWEST AIRLINES CO — Full financial report (2025 Y)](https://app.finbar.com/go?id=P38564145)
22. [SOUTHWEST AIRLINES CO — Full financial report (2026 Q 2)](https://app.finbar.com/go?id=P142659894)
23. [SOUTHWEST AIRLINES CO — Full financial report (2026 Q 2)](https://app.finbar.com/go?id=P142659895)
24. [history.southwest.com](https://history.southwest.com/our-stories/herb-rollin-the-birth-of-southwest-airlines/)
25. [www.swamedia.com](https://www.swamedia.com/news-and-stories/news-release/southwest-airlines-celebrates-50-years-of-giving-people-the-freedom-to-fly-by-un-MCUQXD6ZK36ZDD3OPCN4JPTVX7L4)
26. [www.swamedia.com](https://www.swamedia.com/southwest-stories/success-in-the-west-40-years-in-the-making-MC47PS6N4SKZDUTD7KJ6KJ6OUNXU)
27. [www.swamedia.com](https://www.swamedia.com/southwest-stories/southwest-airlines-the-original-luv-airline-MCAUIBWSLOBJGRRGFMOGE7K5JG74)
28. [history.southwest.com](https://history.southwest.com/our-stories/tickets-please-southwest-in-the-internet-age/)
29. [swamedia.com](https://swamedia.com/releases/release-35e32e1b4d43427a9ded112a71e8f687-Southwest-Airlines-Reports-November-Traffic-9?query=southwest+cargo)
30. [www.swamedia.com](https://www.swamedia.com/southwest-stories/five-years-of-international-southwest-style-MCZPTI3JBXLFEFZCPALQLRMFVWE4)

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