Risk Sleuth
LUV · 10-K filed 5 Feb 2026 · year to 31 Dec 2025

Southwest Airlines

38 named things its latest annual report says its results depend on, each in the company's own words. 21 of them are also named by other companies we've read.

Suppliers

The Boeing Company

depends on · 465 firm orders of MAX aircraft to be delivered through 2031named as a risk
The Company is currently dependent on Boeing as the sole manufacturer of the Company’s aircraft.Risk factors (Item 1A)

Also named by ATI, HWM, LMT, UAL, WWD

Aircraft engine supplier (single source)

depends onnamed as a risk
The Company is also dependent on sole or limited suppliers for aircraft engines and certain other aircraft parts, equipment, and services.Risk factors (Item 1A)

Partners and platforms

Chase Paymentech

depends on · A majority of the Company’s sales transactionsnamed as a risk
A majority of the Company’s sales transactions are processed by Chase Paymentech.Market risk (Item 7A)

Southwest.com and Southwest App

earns from · approximately 78 percent
For the years ended December 31, 2025, and December 31, 2024, approximately 78 percent and 81 percent, respectively, of the Company’s Passenger revenues originated from Southwest.com or the Southwest App (including revenues from SWABIZ®, the Company's online booking tool designed for business Customers who prefer a self-service and low-cost solution for booking their air travel on Southwest).Business (Item 1)

Icelandair, China Airlines, EVA Air, Philippine Airlines, Condor, and Turkish Airlines

depends onnamed as a risk
The Company has entered into interline partnership agreements for international flights, including with Icelandair, China Airlines, EVA Air, Philippine Airlines, Condor, and Turkish Airlines.Risk factors (Item 1A)

JPMorgan Chase (Chase Visa co-branded credit card)

earns from
Members can also earn points through qualifying purchases with Rapid Rewards Partners (which include, for example, car rental agencies, hotels, and restaurants), as well as by using Southwest’s co-branded Chase® Visa credit cards or Southwest Airlines Rapid Rewards Debit Card.Business (Item 1)

Also named by GPGI, MAR, SMCI

T-Mobile

depends on
As part of the evolution, Southwest began offering free Wi-Fi for all Rapid Rewards Members through a sponsorship with T-Mobile in October 2025.Business (Item 1)

Also named by CCI, CMCSA, ECHO

Expedia

earns from
The Company has expanded its distribution channels through partnerships with flight meta search engines, including Google Flights, Kayak, Skyscanner, and, in 2025, online travel agencies Expedia and Priceline, to increase visibility and drive traffic for bookings to Southwest.com.Business (Item 1)

Also named by BKNG

Priceline

earns from
The Company has expanded its distribution channels through partnerships with flight meta search engines, including Google Flights, Kayak, Skyscanner, and, in 2025, online travel agencies Expedia and Priceline, to increase visibility and drive traffic for bookings to Southwest.com.Business (Item 1)

Amadeus, Travelport, and Sabre

earns from
The Company employs a multi-channel distribution strategy for its corporate business travel, offering the ability for business travelers and travel decision makers to book Southwest fares within all major Global Distribution System platforms via Amadeus, Travelport, and Sabre channels, through third-party partners directly connected to the Company's host reservation system, or through the Company’s free corporate online booking tool, SWABIZ®.Business (Item 1)

Other companies

Labor unions

Approximately 84 percent of Company Employeesnamed as a risk
As of December 31, 2025, approximately 84 percent of the Company’s Employees were represented for collective-bargaining purposes by labor unions, making the Company particularly exposed in the event of labor-related job actions.Risk factors (Item 1A)

Also named by ECG, EME, HCA, JLL, MAR, NSC, NYT, SGI and 2 more

Southwest Airlines Pilots' Association (SWAPA)

10,321
Southwest Pilots 10,321 Southwest Airlines Pilots' Association (“SWAPA”) Amendable January 2029Business (Item 1)

Transport Workers Union of America Local 556 (TWU 556)

21,197
Southwest Flight Attendants 21,197 Transportation Workers of America, AFL-CIO, Local 556 (“TWU 556”) Amendable May 2028Business (Item 1)

U.S. air traffic control system

depends onnamed as a risk
The continuation of these air traffic control disruptions and constraints or the FAA’s inability to meet staffing needs on a long-term basis may have a material adverse effect on the Company’s operations.Risk factors (Item 1A)

Also named by DAL, UAL

Competitors

American Airlines, Delta Air Lines, and United Airlines

competes withnamed as a risk
In recent years, the majority of domestic airline service has been provided by Southwest and the other largest major U.S. airlines, including American Airlines, Delta Air Lines, and United Airlines.Business (Item 1)

Places

Denver International Airport

concentrated innamed as a risk
Significant interruptions or disruptions in service at one or more of the Company’s core stations (such as Denver or Chicago-Midway), resulting from air traffic control systems, weather incidents, performance by third-party service providers, interruption of the Company’s technology, the availability and location of the Company’s crew resources, fuel supplies, or otherwise, have resulted, and could again in the future result, in the cancellation or delay of a significant portion of the Company’s flights and, as a result, have had, and could again in the future have, a severe impact on its business, results of operations and financial condition.Risk factors (Item 1A)

Chicago Midway International Airport

concentrated innamed as a risk
Significant interruptions or disruptions in service at one or more of the Company’s core stations (such as Denver or Chicago-Midway), resulting from air traffic control systems, weather incidents, performance by third-party service providers, interruption of the Company’s technology, the availability and location of the Company’s crew resources, fuel supplies, or otherwise, have resulted, and could again in the future result, in the cancellation or delay of a significant portion of the Company’s flights and, as a result, have had, and could again in the future have, a severe impact on its business, results of operations and financial condition.Risk factors (Item 1A)

Texas

operates in
Southwest commenced service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities: Dallas, Houston, and San Antonio.Business (Item 1)

Also named by ABR, AFRM, ALLY, AN, ASO, ASTS, ATO, AXP and 70 more

Hyderabad, India

operates in
In November 2025, the Company formed Southwest Airlines India Private Limited, a wholly-owned subsidiary, in Hyderabad, India.Business (Item 1)

Also named by LPLA, RMNI

Hazards

U.S. federal government shutdown

named as a risk
A shutdown lasting more than several days, such as the partial government shutdown that occurred from October 1, 2025 through November 12, 2025, has resulted, and may in the future result, in substantial operational and financial burdens on the Company.Business (Item 1)

Also named by HII, OKLO, UAL

Winter storms

named as a risk
While the Company operates across a diverse geographic footprint, its operations at times have been adversely and materially impacted by severe weather, such as Winter Storm Fern in January 2026, Hurricane Milton in October 2024, and Winter Storm Elliott in December 2022.Risk factors (Item 1A)

Also named by CRGY

Hail and wind damage

named as a risk
For instance, the cost of insurance premiums related to hail and wind damage has increased for certain facilities, and certain flood insurance is no longer available.Risk factors (Item 1A)

Commodities and inputs

Jet fuel

exposed to its price · approximately 19 percent of the Company's operating expenses for 2025named as a risk
Airlines are inherently dependent upon energy to operate, and jet fuel and oil represented approximately 19 percent of the Company's operating expenses for 2025.Risk factors (Item 1A)

Also named by AIR, ALK, CG, DAL, FDX, GE, UPS, WLFC

Jet fuel

exposed to its price · approximately $22 million for 2026named as a risk
Based on this anticipated usage, a change in jet fuel prices of one cent per gallon would impact the Company’s Fuel and oil expense by approximately $22 million for 2026.Market risk (Item 7A)

Also named by AIR, ALK, CG, DAL, FDX, GE, UPS, WLFC

Sustainable aviation fuel (SAF)

exposed to its pricenamed as a risk
The cost of SAF may be prohibitively expensive without appropriate government support, policies, and incentives (including tax credits).Risk factors (Item 1A)

Also named by ALK, CLMT, DAL, FDX, UAL, UPS

Regulators

Federal Aviation Administration (FAA)

subject tonamed as a risk
The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct.Risk factors (Item 1A)

Also named by ACHR, AIR, ALK, AMT, AVAV, BA, BRK/B, CCI and 27 more

U.S. Department of Transportation (DOT)

subject tonamed as a risk
The Passenger Protection Rules affect the Company’s operations and may have a material effect on the Company’s capital expenditures and earnings.Business (Item 1)

Also named by ACHR, AESI, ALK, BLDR, CHRW, CTAS, DAL, EXPE and 19 more

Transportation Security Administration (TSA)

subject tonamed as a risk
TSA or CBP personnel and mandated security procedures can affect the Company's operations, costs, and Customer Experience.Business (Item 1)

Also named by ALK, BKH, CHRW, CP, CSX, DAL, EXC, EXPD and 13 more

U.S. Customs and Border Protection (CBP)

subject tonamed as a risk
The Company’s international flights are subject to CBP-mandated procedures, which can affect the Company’s operations, costs, and Customer Experience.Risk factors (Item 1A)

Also named by BALL, BJ, CHRW, CROX, EXPD, FDX, FDXF, JBHT and 12 more

Laws and programs

Amended Credit Agreement

Coverage Ratio (as defined therein) of 1.25 to 1.00named as a risk
The Company’s Amended Credit Agreement contains a financial covenant to maintain a Coverage Ratio (as defined therein) of 1.25 to 1.00, subject to the Company's one-time option to reduce this ratio requirement to 0.80 to 1.00 for two consecutive fiscal quarters.Market risk (Item 7A)

Payment Card Industry Data Security Standards (PCI DSS)

subject tonamed as a risk
Failure to maintain PCI DSS compliance or the compromise of cardholder data that the Company processes, stores, or transmits could result in costs, fees, fines, penalties, and restrictions on the Company’s ability to process payment card transactions, which could materially impact operations and Customer Experience.Business (Item 1)

Also named by BBY, CAVA, DG, DLTR, FND, HD, JKHY, KR and 2 more

CORSIA

subject tonamed as a risk
To date, the Company has not incurred any material costs related to CORSIA; however, the Company could experience material costs as a result of future changes to the CORSIA program or the expansion of its international operations, which could increase its potential obligations under CORSIA.Business (Item 1)

Also named by ALK, DAL, FDX, UAL, UPS, WLFC

FAA slot restrictions (Reagan National and LaGuardia)

subject tonamed as a risk
The FAA regulates authorizations to land and take off at certain U.S. airports the Company serves, including Reagan National Airport and LaGuardia Airport.Business (Item 1)

FAA secondary flight deck barrier rule

subject tonamed as a risk
The FAA may also issue regulations requiring installation of secondary barriers on existing commercial aircraft that were manufactured prior to August 2025, which would impose significant costs on the Company.Business (Item 1)

PFAS / CERCLA

subject tonamed as a risk
Moreover, listing PFAS compounds under CERCLA may give rise to strict, joint and several liability for removal, remedial, response, and other costs, the costs of which could be material.Business (Item 1)

ETOPS (Hawaii)

subject tonamed as a risk
The Company is subject to additional, ongoing, ETOPS-specific regulatory and procedural requirements, which present operational and compliance risks to the Company’s business, including costs associated therewith.Risk factors (Item 1A)

Railway Labor Act

subject to
The Railway Labor Act establishes the right of airline employees to organize and bargain collectively.Business (Item 1)

Also named by ALK, CSX, DAL, FDX, UAL, UNP

Technology

Boeing 737 MAX

depends on · 300 Boeing 737-8 (“-8”) aircraftnamed as a risk
The Boeing MAX aircraft are crucial to the Company’s ability to operate and grow its business and fleet modernization initiatives.Risk factors (Item 1A)

Also named by WWD