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Southwest Airlines cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow−$493M in Q3 2026 · −$450M over twelve months

Operating cash flow$513M
Capital spending−$1.0B
Free cash flow−$493M
Cash / net income1.9×

Analysis

In Q3 2026, Southwest Airlines generated $513M of operating cash flow and spent $1.0B on capital projects, leaving free cash flow of −$493M. That is $45.0M less than in Q3 2025 (−$448M).

Over the twelve months to Sep 30, 2026, operating cash flow was $2.8B; the largest uses were capital spending ($3.2B), buybacks ($1.3B), other financing ($1.2B); besides operations, cash came from net borrowing (+) / repaid (−) ($3.0B), other investing ($950M); the cash balance rose by $722M.

Operating cash flow was $513M against net income of $270M — 1.9× profit, cash ran ahead of reported earnings. The largest differences: depreciation & amortization +$398M, gains on disposals −$96.0M, receivables −$95.0M.

Free cash flow

Southwest Airlines: free cash flow by quarterSouthwest Airlines: free cash flow by quarter$16.0MQ4 2024$333MQ1 2025−$259MQ2 2025−$448MQ3 2025−$456MQ4 2025$788MQ1 2026−$288MQ2 2026−$493MQ3 2026
Operating cash flow less capital spending.
Southwest Airlines: operating cash flow against capital spendingSouthwest Airlines: operating cash flow against capital spendingOperating cash flowCapital spending$476M$460MQ4 2024$860M$527MQ1 2025$401M$660MQ2 2025$287M$735MQ3 2025$295M$751MQ4 2025$1.4B$630MQ1 2026$530M$818MQ2 2026$513M$1.0BQ3 2026
Latest (Q3 2026): Operating cash flow $513M, Capital spending $1.0B.

Capital allocation, year by year

Southwest Airlines: where the cash came from (up) and went (down), by fiscal yearSouthwest Airlines: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingBuybacksDividendsFY2021: Operating cash flow $2.3BFY2021: Net borrowing −$376MFY2021: Shares issued $51.0MFY2021: Capital spending −$505M$2.4BFY2021FY2022: Operating cash flow $3.8BFY2022: Net borrowing −$726MFY2022: Shares issued $45.0MFY2022: Capital spending −$3.9B$3.8BFY2022FY2023: Operating cash flow $3.2BFY2023: Net borrowing −$32.0MFY2023: Shares issued $48.0MFY2023: Capital spending −$3.5BFY2023: Dividends −$428M$3.2BFY2023FY2024: Operating cash flow $462MFY2024: Net borrowing −$26.0MFY2024: Shares issued $60.0MFY2024: Capital spending −$2.1BFY2024: Buybacks −$250MFY2024: Dividends −$430M$522MFY2024FY2025: Operating cash flow $1.8BFY2025: Net borrowing $1.5BFY2025: Shares issued $59.0MFY2025: Capital spending −$2.7BFY2025: Buybacks −$2.5BFY2025: Dividends −$399M$3.4BFY2025
Over these 5 years operating cash flow totalled $11.6B; the largest uses were capital spending ($12.7B) and buybacks ($2.8B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$3.6B
Debt$4.9B
Net debt$1.3B
Due within a year$321M

Southwest Airlines's operations bring cash in ($2.8B over twelve months), and it spends more than that on capital projects: a gap of $450M funded from its $3.6B of cash and investments and from borrowing ($4.9B of debt, $321M due within a year). That is a choice to invest, not a cash runway running down.

Southwest Airlines: debt maturities by year (FY2025)Southwest Airlines: debt maturities by year (FY2025)$321MYear 1$2.1BYear 2$766MYear 3$11.0MYear 4$504MYear 5$1.2BAfter year 5
Principal due in each year as disclosed in the annual report, against $3.6B of cash and investments now.

Where the cash came from and went

Southwest Airlines: sources (+) and uses (−) of cash, Q3 2026Southwest Airlines: sources (+) and uses (−) of cash, Q3 2026Capital spending−$1.0BOperating cash flow$513MAsset & business sales$285MOther investing$212MDividends−$176MCash drawn (+) / kept (−)$167MShares issued$14.0MOther financing−$9.0M
Southwest Airlines: sources (+) and uses (−) of cash, TTM to Q3 2026Southwest Airlines: sources (+) and uses (−) of cash, TTM to Q3 2026Capital spending−$3.2BNet borrowing (+) / repaid (−)$3.0BOperating cash flow$2.8BBuybacks−$1.3BOther financing−$1.2BOther investing$950MCash drawn (+) / kept (−)−$722MDividends−$357MShares issued$59.0M

From profit to cash

Southwest Airlines: net income to operating cash flow, Q3 2026Southwest Airlines: net income to operating cash flow, Q3 2026Net income$270MDepreciation & amortization$398MImpairments$30.0MGains on disposals−$96.0MReceivables−$95.0MPayables$41.0MDeferred revenue$92.0MPrepaid and other assets−$41.0MOther liabilities−$86.0MOperating cash flow$513M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$513M−$1.0B—−$176M—$14.0M$167M−$493M
Q2 2026$530M−$818M—−$88.0M$1.0B$15.0M−$463M−$288M
Q1 2026$1.4B−$630M−$1.2B−$93.0M$500M$16.0M−$97.0M$788M
Q4 2025$295M−$751M−$50.0M—$1.5B$13.0M−$329M−$456M
Q3 2025$287M−$735M−$250M−$189M—$14.0M$573M−$448M
Q2 2025$401M−$660M−$1.5B−$103M—$15.0M$4.7B−$259M
Q1 2025$860M−$527M−$750M−$107M—$17.0M−$625M$333M
Q4 2024$476M−$460M−$250M$1.0M—$14.0M$994M$16.0M

Southwest Airlines: income statement and cash flow

Southwest Airlines, Q3 2026: revenue $8.4B (+21% year over year), operating margin 4.5%. The chart follows the revenue to costs, profit and cash.

Southwest Airlines: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.