SOUTHWEST AIRLINES CO. (LUV) FY2026 Q2 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-04-01 to 2026-06-30

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SOUTHWEST AIRLINES CO. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $233,000,000.00Depreciation and amortization → Operating adjustments reconciliation: $402,000,000.00Deferred income taxes → Operating adjustments reconciliation: $60,000,000.00Accounts and other receivables → Operating adjustments reconciliation: $37,000,000.00Accounts payable and accrued liabilities → Operating adjustments reconciliation: $23,000,000.00Operating adjustments reconciliation → Net cash from operating activities: $297,000,000.00Operating adjustments reconciliation → Air traffic liability: $65,000,000.00Operating adjustments reconciliation → Other assets: $54,000,000.00Operating adjustments reconciliation → Other liabilities: $53,000,000.00Operating adjustments reconciliation → Other, net: $53,000,000.00Proceeds from issuance of long-term debt → financing reconciliation: $1,000,000,000.00Proceeds from Employee stock plans → financing reconciliation: $15,000,000.00financing reconciliation → Net cash from financing activities: $493,000,000.00financing reconciliation → Payments of long-term debt and finance lease obligations: $431,000,000.00financing reconciliation → Payments of cash dividends: $88,000,000.00financing reconciliation → Other, net: $3,000,000.00Net cash used in investing activities → investing reconciliation: $560,000,000.00Proceeds from sale of property and equipment → investing reconciliation: $258,000,000.00investing reconciliation → Capital expenditures: $818,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $3,328,000,000.00Net cash from operating activities → Cash sources and uses: $530,000,000.00Net cash from financing activities → Cash sources and uses: $493,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $3,791,000,000.00Cash sources and uses → Net cash used in investing activities: $560,000,000.00Net income: $233,000,000.00Net income+$233.00 MDepreciation and amortization: $402,000,000.00Depreciation & amortization+$402.00 MDeferred income taxes: $60,000,000.00Deferred tax balances+$60.00 MAccounts and other receivables: $37,000,000.00Accounts & other receivables+$37.00 MOther assets: -$54,000,000.00Other operating assets−$54.00 MAccounts payable and accrued liabilities: $23,000,000.00Payables & accrued liabilities+$23.00 MAir traffic liability: -$65,000,000.00Deferred revenue−$65.00 MOther liabilities: -$53,000,000.00Other operating liabilities−$53.00 MCash collateral provided to derivative counterparties: $0.00Other, net: -$53,000,000.00Other operating, net−$53.00 MGain on sale-leaseback transactions: $0.00Impairment of long-lived assets: $0.00Net cash from operating activities: $530,000,000.00Operating cash+$530.00 MOperating adjustments reconciliation: $522,000,000.00Proceeds from Employee stock plans: $15,000,000.00Stock plan proceeds+$15.00 MRepurchase of common stock: $0.00Payments of long-term debt and finance lease obligations: -$431,000,000.00Long-term debt & leases repaid−$431.00 MPayments of cash dividends: -$88,000,000.00Dividends paid−$88.00 MOther, net: -$3,000,000.00Other financing, net−$3.00 MProceeds from issuance of long-term debt: $1,000,000,000.00Debt issued+$1.00 BNet cash from financing activities: $493,000,000.00Financing cash+$493.00 Mfinancing reconciliation: $1,015,000,000.00Capital expenditures: -$818,000,000.00Capital expenditures−$818.00 MPurchases of short-term investments: $0.00Proceeds from sale of property and equipment: $258,000,000.00PP&E sales+$258.00 MProceeds from sales of short-term and other investments: $0.00Other, net: $0.00Proceeds from sale-leaseback transactions: $0.00Net cash used in investing activities: -$560,000,000.00. Cash required to fund net payments.Investing cash−$560.00 Minvesting reconciliation: $818,000,000.00Cash sources and uses: $4,351,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $3,328,000,000.00Beginning cash$3.33 BEnding cash: Cash, cash equivalents, and restricted cash: $3,791,000,000.00Ending cash$3.79 BCASH RECONCILIATIONOperatingflowsFinancingflowsInvestingflowsFree cash flow−$288.00 MOperating cash − cash spent on productive assetsCash flow / Net income2.27×Operating cash flow ÷ net incomeNet cash change+$463.00 MEnding cash − beginning cash
Chart details

SOUTHWEST AIRLINES CO. cash flow reconciliation, Apr 1, 2026 through Jun 30, 2026

Cash flows for Apr 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 31, 2026. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Mar 31, 2026
3,328,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
530,000,000 US dollars. Net cash provided.
Net income
233,000,000 US dollars
Depreciation and amortization
402,000,000 US dollars
Deferred income taxes
60,000,000 US dollars
Accounts and other receivables
37,000,000 US dollars
Other assets
negative 54,000,000 US dollars
Accounts payable and accrued liabilities
23,000,000 US dollars
Air traffic liability
negative 65,000,000 US dollars
Other liabilities
negative 53,000,000 US dollars
Cash collateral provided to derivative counterparties
0 US dollars
Other, net
negative 53,000,000 US dollars
Gain on sale-leaseback transactions
0 US dollars
Impairment of long-lived assets
0 US dollars
Investing activities
negative 560,000,000 US dollars. Net cash used.
Capital expenditures
negative 818,000,000 US dollars
Purchases of short-term investments
0 US dollars
Proceeds from sale of property and equipment
258,000,000 US dollars
Proceeds from sales of short-term and other investments
0 US dollars
Other, net
0 US dollars
Proceeds from sale-leaseback transactions
0 US dollars
Financing activities
493,000,000 US dollars. Net cash provided.
Proceeds from Employee stock plans
15,000,000 US dollars
Repurchase of common stock
0 US dollars
Payments of long-term debt and finance lease obligations
negative 431,000,000 US dollars
Payments of cash dividends
negative 88,000,000 US dollars
Other, net
negative 3,000,000 US dollars
Proceeds from issuance of long-term debt
1,000,000,000 US dollars
Operating adjustment reconciliation
522,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
1,015,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
818,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
0 US dollars
Ending cash on Jun 30, 2026
3,791,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
4,351,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
463,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
2.27×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
530,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
cash spent on productive assets
818,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
negative 288,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $297.00M after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash spent on productive assets equals free cash flow: 530,000,000 US dollars minus 818,000,000 US dollars equals negative 288,000,000 US dollars.
SOUTHWEST AIRLINES CO. (LUV) FY2026 Q2 Statement of Cash Flows Sankey chart
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