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Southwest Airlines LUV Prepaid maintenance

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Other financials

Income statement

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Revenue$8.4B+16.4%
Operating income$285.0M+26.7%
Net income$233.0M+9.4%
EPS (diluted)$0.47+20.5%

Balance sheet

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Cash & equivalents$3.8B+9.1%
Total debt$6.9B+29.0%
Total equity$7.1B-11.5%
Total assets$30.1B+4.9%

Cash flow

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Operating cash flow$530.0M+32.2%
CapEx$818.0M+23.9%
Free cash flow-$288.0M-11.2%

Valuation

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Market cap$23.87B+53.0%
Enterprise value$26.97B+54.4%
P/E28.5×-11.3×
P/S0.8×+0.2×

Profitability

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Operating margin3.5%+2.3pp
Net margin2.8%+1.4pp
FCF margin-1.5%+0.5pp

Returns & leverage

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Return on equity11.1%+6.9pp
Debt / equity+0.3×
Current ratio0.5×-0.1×

Where this comes from

Reported directly by Southwest Airlines in its filing.

Tagged under the XBRL concept luv:PrepaidMaintenance.

The source filing: Southwest Airlines’s 10-Q, filed July 23, 2026.

Filed
Jul 23, 2026, 4:11 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000092380-26-000077
(in millions)June 30, 2026December 31, 2025
Intangible assets, net$296$296
Equity securities393457
Prepaid maintenance316299
Other7060
Other assets$1,075$1,112

Item 1. Financial Statements

FAQ

What is Southwest Airlines's prepaid maintenance?
Southwest Airlines (LUV) reported prepaid maintenance of $316M in Q2 2026.
How has Southwest Airlines's prepaid maintenance changed year-over-year?
Southwest Airlines's prepaid maintenance increased by 23.0% year-over-year, from $257M to $316M.
What is the long-term trend for Southwest Airlines's prepaid maintenance?
Over 3 years (2022 to 2025), Southwest Airlines's prepaid maintenance has grown at a 35.9% compound annual growth rate (CAGR), from $119M to $299M.
What does prepaid maintenance mean?
This represents payments made in advance for future aircraft maintenance services or engine overhauls. By prepaying, the company secures service slots and potentially locks in pricing for critical operational upkeep. It is a vital component of managing the long-term reliability and safety of the fleet.

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