What is Southwest Airlines's tax credit carryforward valuation allowance?

Southwest Airlines (LUV) reported tax credit carryforward valuation allowance of $9M in Q4 2025.

What does tax credit carryforward valuation allowance mean?

A reduction in the value of tax credits because the company may not earn enough profit to use them.

This increase may warrant attention — for this metric, lower values are generally preferred.

StatementBalance Sheet Statement

SectionNon-Current Assets

CategoryRisk

SignalLower is better

VolatilityModerate

First reportedQ4 2024

Last reportedQ4 2025Feb 5, 2026

A decrease in the allowance is positive, signaling increased confidence in future profitability and the ability to utilize tax credits.

This is a contra-asset account that reduces the value of deferred tax assets related to tax credit carryforwards when it...

Commonly monitored in companies with cyclical earnings or significant historical tax losses.

Metric ID: tax_credit_carryforward_valuation_allowance

2 periods

	Q4 '24	Q4 '25
Value	$0	$9M

Range$0 – $9M

What is Southwest Airlines's tax credit carryforward valuation allowance?: Southwest Airlines (LUV) reported tax credit carryforward valuation allowance of $9M in Q4 2025.
What does tax credit carryforward valuation allowance mean?: A reduction in the value of tax credits because the company may not earn enough profit to use them.