Southwest Airlines Co. (LUV) Cash Flow Statement
Where LUV’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $1.84B +298.7% vs 2024
- Capital expenditures
- $2.67B 9.5% of revenue
- Free cash flow
- −$831.0M −3.0% margin
- Returned to shareholders
- $2.95B
- Change in cash
- −$4.28B cash at year-end $3.23B
Drawn to scale: where the cash came from and how it was used. Hover for values.
LUV operating cash flow, capex and free cash flow
LUV cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $4.29B2016 | $1.84B2025 | −9.0%/yr | |
| Capital expenditures | $2.15B2016 | $2.67B2025 | +2.5%/yr | |
| Free cash flow | $2.15B2016 | −$831.0M2025 | — | |
| Free cash flow margin | 10.5%2016 | −3.0%2025 | −13.5 pts | |
| Operating cash flow / net income | 1.912016 | 4.182025 | +2.26 | |
| Stock-based compensation | $33.0M2016 | $86.0M2023 | +14.7%/yr | |
| Dividends paid | $222.0M2016 | $399.0M2025 | +6.7%/yr | |
| Share buybacks (net) | $1.75B2016 | $2.55B2025 | +4.3%/yr | |
| Capex / revenue | 10.5%2016 | 9.5%2025 | −1.0 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
LUV cash flow by activity
LUV net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
LUV cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $441.0M | $465.0M | $465.0M | $539.0M | $977.0M | −$3.07B | $2.30B | $2.46B | $3.49B | $2.24B |
| Depreciation & amortization | $1.56B | $1.66B | $1.52B | $1.35B | $1.27B | $1.25B | $1.22B | $1.20B | $1.22B | $1.22B |
| Stock-based compensation | — | — | $86.0M | $84.0M | $58.0M | −$175.0M | $55.0M | $46.0M | $37.0M | $33.0M |
| Change in working capital | −$278.0M | −$1.59B | $1.25B | $1.48B | −$100.0M | $1.67B | $606.0M | $941.0M | $227.0M | $182.0M |
| Other non-cash items | $119.0M | −$74.0M | −$158.0M | $333.0M | $115.0M | −$802.0M | −$193.0M | $240.0M | −$1.04B | $613.0M |
| Cash from operating activities | $1.84B | $462.0M | $3.16B | $3.79B | $2.32B | −$1.13B | $3.99B | $4.89B | $3.93B | $4.29B |
| Investing activities | ||||||||||
| Capital expenditures | −$2.67B | −$2.08B | −$3.52B | −$3.95B | −$511.0M | −$515.0M | −$1.03B | −$1.98B | −$2.25B | −$2.15B |
| Investments (net) | $1.22B | −$261.0M | −$3.20B | −$3.75B | −$753.0M | −$744.0M | $324.0M | −$67.0M | −$159.0M | −$125.0M |
| Acquisitions & other investing | $21.0M | $2.08B | $3.79B | $3.95B | $0 | $1.24B | $400.0M | $5.0M | $0 | $0 |
| Cash from investing activities | −$1.43B | −$261.0M | −$2.93B | −$3.75B | −$1.26B | −$16.0M | −$303.0M | −$2.04B | −$2.41B | −$2.27B |
| Financing activities | ||||||||||
| Dividends paid | −$399.0M | −$430.0M | −$428.0M | −$214.0M | $0 | −$188.0M | −$372.0M | −$332.0M | −$274.0M | −$222.0M |
| Share repurchases & issuance (net) | −$2.55B | −$250.0M | −$48.0M | $45.0M | $51.0M | −$451.0M | −$2.00B | −$2.00B | −$1.60B | −$1.75B |
| Net borrowing (repayment) | −$1.77B | −$1.34B | −$85.0M | −$648.0M | $524.0M | $10.77B | −$615.0M | −$372.0M | −$2.0M | −$85.0M |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $2.29B | $0 | $0 | $0 | $0 |
| Other financing | $33.0M | $37.0M | $125.0M | −$2.21B | −$216.0M | −$2.76B | −$3.0M | $208.0M | $170.0M | $133.0M |
| Cash from financing activities | −$4.69B | −$1.98B | −$436.0M | −$3.03B | $359.0M | $9.66B | −$2.99B | −$2.50B | −$1.71B | −$1.92B |
| Summary | ||||||||||
| Net change in cash | −$4.28B | −$1.78B | −$204.0M | −$2.99B | $1.42B | $8.52B | $694.0M | $359.0M | −$185.0M | $97.0M |
| Cash at end of period | $3.23B | $7.51B | $9.29B | $9.49B | $12.48B | $11.06B | $2.55B | $1.85B | $1.50B | $1.68B |
| Free cash flow | −$831.0M | −$1.62B | −$356.0M | −$156.0M | $1.81B | −$1.64B | $2.96B | $2.92B | $1.68B | $2.15B |
| Free cash flow margin | −3.0% | −5.9% | −1.4% | −0.7% | 11.5% | −18.1% | 13.2% | 13.3% | 7.9% | 10.5% |
| Capex / revenue | 9.5% | 7.6% | 13.5% | 16.6% | 3.2% | 5.7% | 4.6% | 9.0% | 10.6% | 10.5% |
| Operating cash flow / net income | 4.18 | 0.99 | 6.80 | 7.03 | 2.38 | — | 1.73 | 1.98 | 1.13 | 1.91 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $233.0M | $227.0M | $323.0M | $54.0M | $213.0M | −$149.0M | $261.0M | $67.0M | $367.0M | −$231.0M | −$252.0M | $193.0M |
| Depreciation & amortization | $402.0M | $398.0M | $371.0M | $394.0M | $400.0M | $396.0M | $407.0M | $438.0M | $404.0M | $408.0M | $415.0M | $375.0M |
| Stock-based compensation | — | — | — | — | — | — | — | — | — | — | $86.0M | −$21.0M |
| Change in working capital | −$166.0M | $79.0M | −$476.0M | −$176.0M | −$285.0M | $659.0M | −$127.0M | −$425.0M | −$908.0M | −$214.0M | $365.0M | −$47.0M |
| Other non-cash items | −$105.0M | $714.0M | $77.0M | $15.0M | $73.0M | −$46.0M | −$65.0M | $33.0M | $114.0M | −$67.0M | −$189.0M | $116.0M |
| Cash from operating activities | $364.0M | $1.42B | $295.0M | $287.0M | $401.0M | $860.0M | $476.0M | $113.0M | −$23.0M | −$104.0M | $425.0M | $616.0M |
| Investing activities | ||||||||||||
| Capital expenditures | −$818.0M | −$630.0M | −$859.0M | −$678.0M | −$635.0M | −$501.0M | −$460.0M | −$527.0M | −$500.0M | −$592.0M | −$718.0M | −$850.0M |
| Investments (net) | $0 | $0 | $116.0M | −$428.0M | −$882.0M | $623.0M | $73.0M | $458.0M | −$206.0M | −$585.0M | −$664.0M | −$64.0M |
| Acquisitions & other investing | $258.0M | $185.0M | $1.0M | $678.0M | $635.0M | $501.0M | $460.0M | $527.0M | $500.0M | $592.0M | $718.0M | −$1.35B |
| Cash from investing activities | −$560.0M | −$445.0M | −$742.0M | −$428.0M | −$882.0M | $623.0M | $73.0M | $458.0M | −$206.0M | −$585.0M | −$664.0M | −$2.27B |
| Financing activities | ||||||||||||
| Dividends paid | −$88.0M | −$93.0M | −$399.0M | −$189.0M | −$103.0M | −$107.0M | −$1.0M | −$216.0M | $0 | −$215.0M | $0 | −$214.0M |
| Share repurchases & issuance (net) | $0 | −$1.25B | −$50.0M | −$250.0M | −$1.50B | −$750.0M | −$250.0M | $46.0M | $0 | $0 | — | $36.0M |
| Net borrowing (repayment) | $569.0M | $494.0M | $828.0M | −$6.0M | −$2.59B | −$5.0M | −$1.31B | −$11.0M | — | — | — | −$11.0M |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other financing | $12.0M | −$27.0M | $397.0M | $13.0M | $17.0M | $4.0M | $18.0M | −$29.0M | $4.0M | −$17.0M | $30.0M | −$24.0M |
| Cash from financing activities | $493.0M | −$876.0M | $776.0M | −$432.0M | −$4.18B | −$858.0M | −$1.54B | −$210.0M | $4.0M | −$232.0M | $30.0M | −$213.0M |
| Summary | ||||||||||||
| Net change in cash | $297.0M | $97.0M | $329.0M | −$573.0M | −$4.66B | $625.0M | −$994.0M | $361.0M | −$225.0M | −$921.0M | −$209.0M | $339.0M |
| Cash at end of period | $3.62B | $3.33B | $3.23B | $2.90B | $3.48B | $8.13B | $7.51B | $8.50B | $8.14B | $8.37B | $9.29B | $9.50B |
| Free cash flow | −$454.0M | $788.0M | −$564.0M | −$391.0M | −$234.0M | $359.0M | $16.0M | −$414.0M | −$523.0M | −$696.0M | −$293.0M | −$234.0M |
| Free cash flow margin | −5.4% | 10.9% | −7.6% | −5.6% | −3.2% | 5.6% | 0.2% | −6.0% | −7.1% | −11.0% | −4.3% | −3.6% |
| Capex / revenue | 9.7% | 8.7% | 11.5% | 9.8% | 8.8% | 7.8% | 6.6% | 7.7% | 6.8% | 9.4% | 10.5% | 13.0% |
| Operating cash flow / net income | 1.56 | 6.25 | 0.91 | 5.31 | 1.88 | — | 1.82 | 1.69 | −0.06 | — | — | 3.19 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
LUV cash generation
In fiscal 2025 (ended December 31, 2025), Southwest Airlines generated $1.8 billion of cash from operations (up 298.7%) and spent $2.7 billion on capital expenditures, leaving free cash flow of -$831.0 million, −3.0% of revenue. It returned $2.9 billion to shareholders through dividends ($399.0 million) and net share buybacks ($2.5 billion). Cash and equivalents fell by $4.3 billion over the year.
Related: LUV income statement, LUV balance sheet, LUV dividend history. See the LUV stock overview for the latest quote and news.
LUV cash flow FAQ
What is Southwest Airlines's free cash flow?
Southwest Airlines's free cash flow was -$831.0 million in fiscal 2025: $1.8 billion of operating cash flow minus $2.7 billion of capital expenditures It was -$1.6 billion a year earlier..
How much cash does Southwest Airlines generate from operations?
Southwest Airlines generated $1.8 billion of cash from operating activities in fiscal 2025, 4.18 times its net income of $441.0 million.
How much does Southwest Airlines spend on capital expenditures?
Southwest Airlines spent $2.7 billion on capital expenditures in fiscal 2025, 9.5% of revenue, compared with $2.1 billion the year before.
How much stock does Southwest Airlines buy back?
Southwest Airlines spent $2.5 billion on net share repurchases in fiscal 2025.
How much does Southwest Airlines pay in dividends?
Southwest Airlines paid $399.0 million in dividends in fiscal 2025.