Southwest Airlines Co. Condensed Consolidated Balance Sheet (in millions) (unaudited) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 3,791 $ 3,231 Accounts and other receivables 1,218 1,149 Inventories of parts and supplies, at cost 917 775 Prepaid expenses and other current assets 556 490 Total current assets 6,482 5,645 Property and equipment, at cost: Flight equipment 26,198 26,293 Ground property and equipment 9,485 9,163 Deposits on flight equipment purchase contracts 616 401 Assets constructed for others 88 88 36,387 35,945 Less allowance for depreciation and amortization 15,745 15,700 20,642 20,245 Goodwill 970 970 Operating lease right-of-use assets 953 1,089 Other assets 1,075 1,112 $ 30,122 $ 29,061 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,072 $ 1,991 Accrued liabilities 2,247 2,349 Current operating lease liabilities 283 312 Air traffic liability 6,510 5,945 Current maturities of long-term debt 2,156 324 Total current liabilities 13,268 10,921 Long-term debt less current maturities 3,790 4,577 Air traffic liability - noncurrent 1,674 1,219 Deferred income taxes 2,421 2,289 Noncurrent operating lease liabilities 660 768 Other noncurrent liabilities 1,227 1,306 Stockholders' equity: Common stock 888 888 Capital in excess of par value 4,294 4,322 Retained earnings 16,672 16,388 Accumulated other comprehensive income (loss) 22 (24) Treasury stock, at cost (14,794) (13,593) Total stockholders' equity 7,082 7,981 $ 30,122 $ 29,061 See accompanying notes. 3 Table of Contents Southwest Airlines Co. Condensed Consolidated Statement of Comprehensive Income (in millions, except per share amounts) (unaudited) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 OPERATING REVENUES: Passenger $ 7,745 $ 6,627 $ 14,337 $ 12,438 Freight 50 44 93 86 Other 637 573 1,252 1,148 Total operating revenues 8,432 7,244 15,682 13,672 OPERATING EXPENSES: Salaries, wages, and benefits 3,499 3,262 6,797 6,364 Aircraft fuel and related taxes 2,215 1,326 3,571 2,575 Maintenance materials and repairs 294 331 552 623 Landing fees and airport rentals 636 567 1,208 1,090 Depreciation and amortization 402 400 800 795 Other operating expenses 1,101 1,133 2,139 2,223 Total operating expenses 8,147 7,019 15,067 13,670 OPERATING INCOME 285 225 615 2 NON-OPERATING EXPENSES (INCOME): Interest expense 64 39 118 85 Capitalized interest (12) (13) (25) (24) Interest income (33) (54) (57) (138) Other (gains) losses, net (40) (27) (13) (9) Total non-operating expenses (income) (21) (55) 23 (86) INCOME BEFORE INCOME TAXES 306 280 592 88 PROVISION FOR INCOME TAXES 73 67 132 24 NET INCOME $ 233 $ 213 $ 460 $ 64 NET INCOME PER SHARE, BASIC $ 0.48 $ 0.40 $ 0.93 $ 0.11 NET INCOME PER SHARE, DILUTED $ 0.47 $ 0.39 $ 0.92 $ 0.11 COMPREHENSIVE INCOME $ 256 $ 202 $ 506 $ 54 WEIGHTED AVERAGE SHARES OUTSTANDING Basic 489 538 494 561 Diluted 493 541 498 564 See accompanying notes. 4 Table of Contents Southwest Airlines Co. Condensed Consolidated Statement of Stockholders' Equity (in millions, except per share amounts) (unaudited) Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Balance at December 31, 2025 $ 888 $ 4,322 $ 16,388 $ (24) $ (13,593) $ 7,981 Repurchase of common stock (b) — (53) — — (1,217) (a) (1,270) Issuance of common and treasury stock pursuant to Employee stock plans — (26) — — 12 (14) Share-based compensation — 17 — — — 17 Cash dividends, $0.18 per share — — (89) — — (89) Comprehensive income — — 227 23 — 250 Balance at March 31, 2026 $ 888 $ 4,260 $ 16,526 $ (1) $ (14,798) $ 6,875 Issuance of common and treasury stock pursuant to Employee stock plans — 13 — — 4 17 Share-based compensation — 21 — — — 21 Cash dividends, $0.18 per share — — (87) — — (87) Comprehensive income — — 233 23 — 256 Balance at June 30, 2026 $ 888 $ 4,294 $ 16,672 $ 22 $ (14,794) $ 7,082 (a) Includes excise tax incurred on share repurchases, net of issuances. (b) For the three months ended March 31, 2026, the Company repurchased 28 million shares of its common stock. Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Balance at December 31, 2024 $ 888 $ 4,199 $ 16,332 $ (25) $ (11,044) $ 10,350 Repurchase of common stock — — — — (758) (a) (758) Issuance of common and treasury stock pursuant to Employee stock plans — (10) — — 13 3 Share-based compensation — 21 — — — 21 Cash dividends, $0.18 per share — — (103) — — (103) Comprehensive income (loss) — — (149) 1 — (148) Balance at March 31, 2025 $ 888 $ 4,210 $ 16,080 $ (24) $ (11,789) $ 9,365 Repurchase of common stock — — — — (1,515) (a) (1,515) Issuance of common and treasury stock pursuant to Employee stock plans — 12 — — 5 17 Share-based compensation — 25 — — — 25 Cash dividends, $0.18 per share — — (94) — — (94) Comprehensive income (loss) — — 213 (11) — 202 Balance at June 30, 2025 $ 888 $ 4,247 $ 16,199 $ (35) $ (13,299) $ 8,000 (a) Includes excise tax incurred on share repurchases, net of issuances. See accompanying notes. 5 Table of Contents Southwest Airlines Co. Condensed Consolidated Statement of Cash Flows (in millions) (unaudited) Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 233 $ 213 $ 460 $ 64 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 402 400 800 795 Impairment of long-lived assets — 8 — 8 Deferred income taxes 60 66 117 23 Gain on sale-leaseback transactions — — — (3) Changes in certain assets and liabilities: Accounts and other receivables 37 90 (56) 146 Other assets (54) 212 (115) 357 Accounts payable and accrued liabilities 23 (95) (56) (220) Air traffic liability (65) (606) 1,021 55 Other liabilities (53) 28 (130) (35) Cash collateral provided to derivative counterparties — — — (22) Other, net (53) 85 (94) 93 Net cash provided by operating activities 530 401 1,947 1,261 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (818) (660) (1,448) (1,187) Proceeds from sale of property and equipment 258 25 450 51 Proceeds from sale-leaseback transactions — — — 24 Purchases of short-term investments — (319) — (370) Proceeds from sales of short-term and other investments — 72 — 1,226 Other, net — — (6) (3) Net cash used in investing activities (560) (882) (1,004) (259) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 1,000 — 1,500 — Proceeds from Employee stock plans 15 15 31 32 Repurchase of common stock — (1,500) (1,250) (2,250) Payments of long-term debt and finance lease obligations (431) (2,592) (437) (2,598) Payments of cash dividends (88) (103) (181) (210) Other, net (3) 2 (46) (10) Net cash provided by (used in) financing activities 493 (4,178) (383) (5,036) NET CHANGE IN CASH AND CASH EQUIVALENTS 463 (4,659) 560 (4,034) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,328 8,134 3,231 7,509 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 3,791 $ 3,475 $ 3,791 $ 3,475 CASH PAYMENTS FOR: Interest, net of amount capitalized $ 92 $ 53 $ 93 $ 64 SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS: Right-of-use assets acquired or modified under operating leases $ 11 $ 20 $ 17 $ 34 See accompanying notes. 6 Table of Contents Southwest Airlines Co. Notes to Condensed Consolidated Financial Statements (unaudited) 1. Basis of Presentation 2. New Accounting Pronouncements 3. Financial Derivative Instruments 4. Comprehensive Income 5. Revenue 6. Net Income Per Share 7. Fair Value Measurements 8. Supplemental Financial Information 9. Commitments and Contingencies 10. Debt 7 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) 1. BASIS OF PRESENTATION Basis of Presentation Southwest Airlines Co. (the "Company" or "Southwest") operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. The unaudited Condensed Consolidated Financial Statements include accounts of the Company and its wholly owned subsidiaries. The accompanying unaudited Condensed Consolidated Financial Statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States ("GAAP") for complete financial statements as required in Form 10-K. The unaudited Condensed Consolidated Financial Statements for the interim periods ended June 30, 2026 and 2025 include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. This includes all normal and recurring adjustments and elimination of significant intercompany transactions. Financial results for the Company and airlines in general can be seasonal in nature. In most markets the Company serves, demand for air travel has historically been greater, and, therefore, revenues in the airline industry tend to be stronger, during the summer months and peak travel periods, including holidays. As a result, in many cases, the Company's results of operations reflect this seasonality. However, air travel is also significantly impacted by general economic conditions, the amount of disposable income available to consumers and changes in consumer behavior, unemployment levels, corporate travel budgets, global pandemics, extreme or severe weather and natural disasters, fears or actual acts of terrorism or war, governmental actions, and other factors beyond the Company's control. These and other factors, such as the price of jet fuel in some periods, have created, and may continue to create, significant volatility in the Company's financial results. Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for future quarters or for the year ended December 31, 2026. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Breakage Revenue During second quarter 2026, in association with its former policy in which flight credits (funds that may be applied towards future travel) did not expire, the Company determined that a reversal of a portion of previously recognized, prior years' breakage revenue was warranted. Following the Company's prior policy decision in July 2022 to eliminate the expiration date on flight credits issued, approximately $7.9 billion in non-expiring flight credits were issued by the Company between July 2022 and December 2025, and the Company had previously estimated, based on both historical and projected redemption behavior at that time, approximately 23 percent of those non-expiring flight credits would not be redeemed by Customers, and correspondingly recorded estimated breakage revenue for those amounts over the time period July 2022 through December 2025. Based on the most recent flight credit redemption trends and updated projections of future redemptions for the remaining available non-expiring flight credits, the Company now believes that approximately 20 percent of the non-expiring flight credits originally issued between July 2022 and December 2025 will not be redeemed by Customers. Approximately $1.8 billion of such flight credits remain available as of June 30, 2026. As a result of this change in estimate, the Company is recording a second quarter 2026 reversal of breakage revenue of $285 million. No breakage revenue related to this population of non-expiring flight credits was recognized in first half 2026; thus, the entire amount of the second quarter 2026 breakage revenue reversal relates to years 2022 through 2025. The timing of this adjustment in the second quarter 2026 was impacted by a combination of quantitative trends and qualitative factors affecting Customer behavior, including the Company's recent significant business transformation initiatives, changes to fare products and distribution channels, and changes to its flight credit policies. These factors altered historical Customer redemption patterns and reduced the predictive value of historical information observed during the period in which the credits were issued. As a result, management determined that Customer behavior 8 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) observed through the second quarter of 2026 provided a more reliable basis for estimating the ultimate level of unredeemed flight credits than had previously been determined. The Company implemented a change to its flight credit policy, in which flight credits created from reservations booked and ticketed or voluntarily changed on or after May 28, 2025, will typically have a specified expiration date of one year or less, depending on the type of fare purchased and form of payment used. However, some non-expiring flight credits continued to be issued subsequent to May 28, 2025, primarily due to reservations for future travel that were already in place as of that date that were subsequently modified or cancelled. This second quarter 2026 breakage revenue adjustment, and its corresponding increase to Air Traffic Liability, resulted in the following impact to results: Three months ended June 30, (in millions, except per share amounts) 2026 Breakage revenue adjustment $ (285) Net income* (185) Net income per basic share (0.38) Net income per diluted share (0.37) * net of profit-sharing benefit and income taxes Breakage estimates are based on Customers' historical travel behavior as well as assumptions about their future travel behavior. Assumptions about the Customers' future travel behavior can be impacted by several factors including but not limited to: fare increases; fare sales; changes to the Company's ticketing policies; changes to the Company’s refund, exchange, and unused flight credit policies; seat availability; economic factors; and the Company's observations about changes in actual Customer use of flight credits. See Note 5 for further information. Operating Segments and Related Disclosures The Company's chief operating decision maker, the Company's President, Chief Executive Officer, & Vice Chairman of the Board of Directors, assesses performance for the Company's single reportable segment and decides how to allocate resources based on its Net income or loss (see the unaudited Condensed Consolidated Statement of Comprehensive Income). For single reportable segment-level financial information, total assets, revenues from external Customers, depreciation and amortization expense, interest income and interest expense, provision for income taxes, other non-operating expenses, and significant non-cash transactions, see Item 1. Financial Statements. 2. NEW ACCOUNTING PRONOUNCEMENTS On May 19, 2026, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2026‑02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes a new accounting model for environmental credits and related obligations. ASU 2026-02 provides guidance on the recognition, measurement, presentation, and disclosure of environmental credits, as well as obligations that may be settled using such credits. Under ASU 2026-02, environmental credits are recognized as assets when it is probable they will be used to satisfy a compliance obligation, transferred, or otherwise utilized in a qualifying manner. The accounting for these credits, including subsequent measurement, depends on whether they are expected to be used for compliance or noncompliance purposes. ASU 2026-02 also requires entities to recognize environmental credit obligations as activities occur that give rise to a regulatory requirement and introduces a measurement approach that is generally linked to the cost basis of credits expected to be used to settle such obligations. This standard is effective for public business entities for annual reporting periods beginning after December 15, 2027, including 9 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) interim periods within those annual periods, with early adoption permitted. The Company is evaluating this new standard, but does not expect it to have a significant impact on its financial statement presentation or results. On September 18, 2025, the FASB issued ASU 2025-06, Accounting for and Disclosure of Software Costs. The new standard modernizes the guidance to reflect the software development approaches currently being used by removing all references to "development stages" from Accounting Standards Codification ("ASC") 350-40 Intangibles—Goodwill and Other - Internal-Use Software. Under ASU 2025-06, only the following criteria in ASC 350-40-25-12(b) and (c) must be met for entities to begin capitalizing software costs: (i) management, with the relevant authority, implicitly or explicitly authorizes and commits to funding a computer software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the "probable-to-complete recognition threshold"). This standard is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities may apply the guidance prospectively, retrospectively, or via a modified prospective transition method. The Company is evaluating this new standard, but does not expect it to have a significant impact on its financial statement presentation or results. On July 30, 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This standard includes the option for entities to elect a practical expedient that assumes current conditions as of the balance sheet date do not change for the remaining life of the asset as a part of estimating expected credit losses. The Company has elected this practical expedient as of first quarter 2026, and there was no significant impact on its financial statement presentation or disclosures. On November 4, 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard responds to investor input by requiring public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to the financial statements. This standard does not change the presentation of expense information or expense captions reported on the face of the income statement. This standard is effective for all entities that are subject to Subtopic 220-40, for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, but early adoption is permitted. The Company is evaluating this new standard, but does not expect it to have a significant impact on its financial statement presentation or results. 3. FINANCIAL DERIVATIVE INSTRUMENTS Fuel Contracts Airline operators are inherently dependent upon energy to operate and, therefore, are impacted by changes in jet fuel prices. Furthermore, jet fuel typically represents one of the largest operating expenses for airlines. The Company has historically aimed to reduce volatility in operating expenses through its fuel hedging program. However, based on higher fuel hedging premium costs over time and other factors, the Company discontinued its fuel hedging program and terminated its remaining portfolio of fuel hedging contracts, which were scheduled to settle through 2027, to effectively close its fuel hedging portfolio during 2025. The Company does not intend to add additional fuel derivatives. The Company recorded expenses associated with fuel derivative contracts that settled during the three and six months ended June 30, 2025 and for amounts that remain in Accumulated Other Comprehensive Income ("AOCI") associated with previously terminated hedges during the three and six months ended June 30, 2026 and 2025. These expenses are reflected as a component of Aircraft fuel and related taxes expense within the unaudited Condensed Consolidated Statement of Comprehensive Income: 10 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Location and amount reclassified from AOCI into income on cash flow hedging relationships Three months ended Six months ended Income Statement June 30, June 30, (in millions) location 2026 2025 2026 2025 Fuel derivative contracts (gross) Aircraft fuel and related taxes $ 29 $ 36 $ 58 $ 73 Derivatives designated and qualified in cash flow hedging relationships Loss recognized in AOCI on derivatives, net of tax Three months ended Six months ended June 30, June 30, (in millions) 2026 2025 2026 2025 Fuel derivative contracts $ — $ 40 $ — $ 69 As of June 30, 2026, approximately $79 million remained in AOCI related to these previously closed positions, with approximately $58 million to be recognized in the remainder of 2026 and $21 million to be recognized in 2027. This balance in AOCI, which does not include any tax impact, will also be characterized as premium expense and similarly reclassified as an increase to Aircraft fuel and related taxes expense in future periods when the originally forecasted transactions occur (through the end of 2027) and is net of the impact of the cash proceeds from the hedge terminations. See Note 4 for additional information on AOCI. All cash flows associated with purchasing and selling fuel derivatives (including terminations) are classified as Other operating cash flows in the unaudited Condensed Consolidated Statement of Cash Flows. Interest Rate Derivatives The Company holds interest rate swap agreements, which collectively qualify as a fair value hedge, related to its $750 million 5.25% unsecured notes due 2035. The primary objective for the Company's use of these agreements is to hedge against changes in the fair value of the debt instrument caused by changes in market interest rates, specifically SOFR, by converting the fixed rate interest of the debt to a floating rate. Under these agreements, the Company pays SOFR plus a margin on the notional amount of the debt and receives payments based on the fixed stated rate of the notes. The fair values of the interest rate swap agreements, which are adjusted regularly, have been aggregated by counterparty for classification in the unaudited Condensed Consolidated Balance Sheet. The following table presents the location of the Company’s interest rate derivative instruments within the unaudited Condensed Consolidated Balance Sheet: Derivatives designated as hedges Liability derivatives Balance Sheet Fair value at Fair value at (in millions) location 6/30/2026 12/31/2025 Interest rate derivative contracts Other noncurrent liabilities 28 16 The corresponding offsetting adjustment related to the liability (or asset) associated with the Company’s fair value hedges is to Long-term debt less current maturities. 11 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Credit Risk and Collateral The Company had no cash collateral posted or received as of June 30, 2026. 12 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) 4. COMPREHENSIVE INCOME Comprehensive income (loss) includes changes in the fair value of certain financial derivative instruments that qualified for hedge accounting and actuarial gains/losses arising from the Company’s postretirement benefit obligation. The Company terminated its remaining portfolio of fuel hedging contracts during second quarter 2025, which were scheduled to settle through 2027, to effectively close its fuel hedging portfolio and program. See Note 3. The differences between Net income and Comprehensive income for the three and six months ended June 30, 2026 and 2025 were as follows: Three months ended June 30, (in millions) 2026 2025 NET INCOME $ 233 $ 213 Unrealized (gain) loss on fuel derivative instruments, net of deferred taxes of $7 and ($4) 22 (a) (12) (a) Other, net of deferred taxes of $— and $1 1 1 Total other comprehensive income (loss) $ 23 $ (11) COMPREHENSIVE INCOME $ 256 $ 202 (a) Includes reclassification adjustments from AOCI into Aircraft fuel and related taxes expense associated with hedges previously terminated. Six months ended June 30, (in millions) 2026 2025 NET INCOME $ 460 $ 64 Unrealized (gain) loss on fuel derivative instruments, net of deferred taxes of $14 and ($4) 44 (a) (12) (a) Other, net of deferred taxes of $— and $1 2 2 Total other comprehensive income (loss) $ 46 $ (10) COMPREHENSIVE INCOME $ 506 $ 54 (a) Includes reclassification adjustments from AOCI into Aircraft fuel and related taxes expense associated with hedges previously terminated. A rollforward of the amounts included in AOCI, net of taxes, is shown below for the three and six months ended June 30, 2026: (in millions) Fuel derivatives Defined benefit plan items Other Deferred tax impact Accumulated other comprehensive income (loss) Balance at March 31, 2026 $ (108) $ 106 $ — $ 1 $ (1) Reclassification to earnings 29 — 1 (7) 23 Balance at June 30, 2026 $ (79) $ 106 $ 1 $ (6) $ 22 (in millions) Fuel derivatives Defined benefit plan items Other Deferred tax impact Accumulated other comprehensive income (loss) Balance at December 31, 2025 $ (137) $ 106 $ (1) $ 8 $ (24) Reclassification to earnings 58 — 2 (a) (14) 46 Balance at June 30, 2026 $ (79) $ 106 $ 1 $ (6) $ 22 13 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) The following tables illustrate the significant amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2026: Three months ended June 30, 2026 (in millions) Amounts reclassified from AOCI Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income AOCI components Unrealized loss on fuel derivative instruments $ 29 Aircraft fuel and related taxes 7 Less: Tax expense $ 22 Net of tax Other $ 2 Other operating expenses (1) Interest expense — Less: Tax expense $ 1 Net of tax Total reclassifications for the period $ 23 Net of tax Six months ended June 30, 2026 (in millions) Amounts reclassified from AOCI Affected line item in the unaudited Condensed Consolidated Statement of Comprehensive Income AOCI components Unrealized loss on fuel derivative instruments $ 58 Aircraft fuel and related taxes 14 Less: Tax expense $ 44 Net of tax Other $ 3 Other operating expenses (1) Interest expense — Less: Tax expense $ 2 Net of tax Total reclassifications for the period $ 46 Net of tax 5. REVENUE Passenger Revenues The Company’s contracts with its Customers primarily consist of ticket sales, which are initially deferred as Air traffic liability. Passenger revenue associated with tickets is recognized when the performance obligation to the Customer is satisfied, which is primarily when travel is provided. For air travel on Southwest, the amount of tickets (which includes flight credits—also referred to as partial tickets) that will go unused, referred to as breakage, is estimated and recognized in Passenger revenue once the scheduled flight date has passed, in proportion to the pattern of rights exercised by the Customer. Revenue is categorized by revenue source as the Company believes this best depicts the nature, amount, timing, and uncertainty of revenue and cash flow. The following tables provide the components of Passenger revenue and Other revenue recognized for the three and six months ended June 30, 2026 and 2025: 14 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Passenger non-loyalty $ 6,104 (a) $ 5,448 $ 11,292 (a) $ 10,214 Passenger loyalty - air transportation 766 870 1,454 1,670 Passenger ancillary sold separately (b) 875 309 1,591 554 Total passenger revenues $ 7,745 $ 6,627 $ 14,337 $ 12,438 (a) Includes a reversal of previously recognized breakage revenue of approximately $285 million, related to the periods July 2022 through December 2025. See Note 1 for further information. (b) The increase in Passenger ancillary sold separately in the three and six months ended June 30, 2026 as compared with the respective prior periods was due to the Company's initiative to implement new ancillary products—bag fees for most fare products beginning May 28, 2025, and operating assigned and extra legroom seating for travel beginning January 27, 2026, which includes the co-brand impact associated with those initiatives. Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Loyalty program $ 578 $ 536 $ 1,135 $ 1,081 Other 59 37 117 67 Total other revenues $ 637 $ 573 $ 1,252 $ 1,148 Through the Company's co-branded credit card agreement ("Co-brand Agreement") with JPMorgan Chase Bank, N.A. ("Chase"), the Company sells loyalty points, certain marketing benefits, which consist of the use of the Southwest Airlines brand and access to Rapid Rewards Member lists, licensing and advertising elements, the use of the Company’s resource team, and other airline benefits. The Company allocates consideration received to performance obligations based on the relative standalone selling price of those obligations. In 2025, the Company and Chase amended the Co-brand Agreement—in the first quarter to extend the term of the agreement and add enhanced airline benefits for Cardmembers associated with the Company's planned assigned and extra legroom seating initiative, which went into effect on January 27, 2026, and again in the second quarter to add benefits to Cardmembers related to the Company's changes in its checked bag policy that went into effect on May 28, 2025. For each change to the agreement, the Company estimated the selling prices and volumes over the term of the amended agreement in order to determine the allocation of proceeds to each of the three performance obligations identified in the agreement, which have been characterized as a transportation component, a marketing component, and an airline benefits component. The allocations utilized are reviewed to determine if adjustment is necessary any time there is a modification to the Co-brand Agreement. The Company defers revenue for points earned by Customers through the Co-brand Agreement and subsequently records Passenger revenue related to loyalty point redemptions for air travel when the travel is delivered. The marketing elements are recognized as Other revenue and the airline benefits are recognized as Passenger revenue when the performance obligations related to those services are satisfied, which is generally the same period consideration is received from Chase. As a result of the 2025 amendments to the Co-brand Agreement, a larger portion of the Company's co-brand Chase® Visa credit card benefits from Chase are now being classified within Passenger revenues commensurate with the Company's ability to satisfy the associated performance obligations, which began in mid-2025 associated with its change in policy for checked bags, and in first quarter 2026 associated with its implementation of assigned and extra legroom seating initiatives. As of June 30, 2026, and December 31, 2025, the components of Air traffic liability, including contract liabilities based on tickets sold and unused flight credits available to the Customer, both of which are net of recorded breakage, and loyalty points available for redemption, within the unaudited Condensed Consolidated Balance Sheet were as follows: 15 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Balance as of (in millions) June 30, 2026 December 31, 2025 Air traffic liability - passenger travel and ancillary passenger services $ 4,010 $ 2,830 Air traffic liability - loyalty program 4,174 4,334 Total Air traffic liability $ 8,184 $ 7,164 The balance in Air traffic liability - passenger travel and ancillary passenger services also includes flight credits not currently associated with a ticket that can be applied by Customers towards the purchase of future travel. These flight credits are typically created as a result of a prior ticket cancellation or exchange, and are recorded net of associated breakage. Rollforwards of the Company's Air traffic liability - loyalty program for the three and six months ended June 30, 2026 and 2025 were as follows: Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Air traffic liability - loyalty program - beginning balance $ 4,278 $ 4,841 $ 4,334 $ 4,849 Amounts deferred associated with points awarded 695 748 1,357 1,565 Revenue recognized from points redeemed - Passenger (766) (870) (1,454) (1,670) Revenue recognized from points redeemed - Other (33) (26) (63) (51) Air traffic liability - loyalty program - ending balance $ 4,174 $ 4,693 $ 4,174 $ 4,693 Air traffic liability includes consideration received for ticket and loyalty related performance obligations which have not been satisfied. Rollforwards of the amounts included in Air traffic liability as of June 30, 2026 and 2025 were as follows: Six months ended June 30, (in millions) 2026 2025 Air traffic liability - beginning balance $ 7,164 $ 8,242 Current period sales (a) 14,891 12,489 Revenue from amounts included in contract liability opening balances (3,515) (3,855) Revenue from current period sales (10,356) (8,580) Air traffic liability - ending balance $ 8,184 $ 8,296 (a)Current period sales include passenger travel, ancillary services, flight loyalty, and partner loyalty On May 28, 2025, the Company implemented a change to its flight credit policy. Flight credits created from reservations booked and ticketed or voluntarily changed on or after May 28, 2025, will typically have a specified expiration date of one year or less, depending on the type of fare purchased and form of payment used. Flight credits issued between July 28, 2022, and May 28, 2025, including any future issuances associated with bookings made prior to the policy change on May 28, 2025, do not have an expiration date. However, some non-expiring flight credits continued to be issued subsequent to May 28, 2025, primarily due to reservations for future travel that were already in place as of that date that were subsequently modified or cancelled. During second quarter 2026, in association with its former policy in which flight credits did not expire, the Company determined that a reversal of a portion of previously recognized breakage revenue was warranted. Approximately $7.9 billion in non-expiring flight credits were issued by the Company between July 2022 and December 2025. The Company had estimated a portion of those non-expiring flight credits would not be redeemed by Customers, and correspondingly recorded estimated breakage for those amounts over those periods. Due to higher-than-projected Customer redemptions of these non-expiring flight credits, along with updated projections of future redemptions, the Company has revised its estimates with regard to the remaining non-expiring flight credits that remain available for redemption. The Company determined that a reversal of a portion of previously recognized 16 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) breakage revenue of $285 million was warranted and recorded this adjustment during the three months ended June 30, 2026. This change in breakage revenue, and the corresponding impact to Passenger revenue, is considered a change in estimate (see Note 1 for further clarification). The Company issues vacation travel credits for cancelled bookings resulting from the Getaways by Southwest™ ("Getaways") product, and these credits have an 18-month expiration period from the original booking date. As the Company believes that a portion of Customer travel credits (both flight credits and Getaways travel credits) issued will not be redeemed, it estimates and records breakage associated with such amounts. The amount of Customer travel credits represents approximately 6 percent and 5 percent of the total Air traffic liability balance as of June 30, 2026, and December 31, 2025, respectively. 6. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share (in millions, except per share amounts). Basic net income per share is calculated by dividing Net income by the weighted average of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and six months ended June 30, 2025, an immaterial number of shares related to the Company's restricted stock units were excluded from the denominator because inclusion of such shares would be antidilutive. There were no antidilutive restricted stock units for the three and six months ended June 30, 2026. During second quarter 2025, the Company's remaining balance of 1.25 percent Convertible Senior Notes due 2025 (the "Convertible Notes") of $1.6 billion was repaid, settling both principal and accrued interest. For the three and six months ended June 30, 2025, the weighted-average impact for the outstanding portion of the Convertible Notes was immaterial. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 NUMERATOR: Net income attributable to common stockholders $ 233 $ 213 $ 460 $ 64 DENOMINATOR: Weighted-average shares outstanding, basic 489 538 494 561 Dilutive effect of restricted stock units 4 3 4 3 Weighted-average shares outstanding, diluted 493 541 498 564 NET INCOME PER SHARE: Basic $ 0.48 $ 0.40 $ 0.93 $ 0.11 Diluted $ 0.47 $ 0.39 $ 0.92 $ 0.11 7. FAIR VALUE MEASUREMENTS Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. 17 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) As of June 30, 2026, the Company held certain items that are required to be measured at fair value on a recurring basis, including cash equivalents. The Company may also from time to time hold short-term investments and available-for-sale securities. The majority of the Company’s cash equivalents consist of instruments classified as Level 1. However, the Company classifies any certificates of deposit and time deposits it holds as Level 2 due to the fact that the fair value for these instruments is determined utilizing observable inputs in non-active markets. Equity securities primarily consist of investments with readily determinable market values associated with the Company’s excess benefit plan. The Company’s interest rate derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Interest rate derivatives currently consist solely of swap agreements. See Note 3 for further information on the Company’s derivative instruments and hedging activities. The fair values of swap contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Therefore, the Company has categorized these swap contracts as Level 2. The Company also considered counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company consistently applied these valuation techniques in all periods presented and believes it obtained the most accurate information available for the types of derivative contracts it holds. Included in Equity securities are the Company’s investments primarily associated with its deferred compensation plans, which consist of mutual funds that are publicly traded and for which market prices are readily available. These plans are non-qualified deferred compensation plans designed to hold contributions in excess of limits established by the Internal Revenue Code of 1986, as amended. The distribution timing and payment amounts under these plans are made based on the participant’s distribution election and plan balance. Assets related to the funded portions of the deferred compensation plans are held in a rabbi trust, and the Company remains liable to these participants for the unfunded portion of the plans. The Company records changes in the fair value of plan obligations and plan assets, which net to zero, within the Salaries, wages, and benefits line and Other (gains) losses, net line, respectively, of the unaudited Condensed Consolidated Statement of Comprehensive Income. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2026, and December 31, 2025: Fair value measurements at reporting date using: Quoted prices in active markets for identical assets Significant other observable inputs Description June 30, 2026 (Level 1) (Level 2) Assets (in millions) Cash equivalents: Cash equivalents (a) $ 3,391 $ 3,391 $ — Time deposits 400 — 400 Equity Securities 393 393 — Total assets $ 4,184 $ 3,784 $ 400 Liabilities Interest rate derivatives (see Note 3) $ (28) $ — $ (28) (a) Cash equivalents are primarily composed of money market investments. 18 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Fair value measurements at reporting date using: Quoted prices in active markets for identical assets Significant other observable inputs Description December 31, 2025 (Level 1) (Level 2) Assets (in millions) Cash equivalents: Cash equivalents (a) $ 2,831 $ 2,831 $ — Time deposits 400 — 400 Equity Securities 457 457 — Total assets $ 3,688 $ 3,288 $ 400 Liabilities Interest rate derivatives (see Note 3) $ (16) $ — $ (16) (a) Cash equivalents are primarily composed of money market investments. The Company did not have any material assets or liabilities measured at fair value on a nonrecurring basis, or on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2026, or the year ended December 31, 2025. The carrying amounts and estimated fair values of the Company’s short-term and long-term debt (including current maturities), as well as the applicable fair value hierarchy tier, as of June 30, 2026, are presented in the table below. The fair values of the Company’s publicly held debt are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized these agreements as Level 2. All privately held debt agreements are categorized as Level 3. The Company has determined the estimated fair value of this debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable. The Company utilizes indicative pricing from counterparties and a discounted cash flow method to estimate the fair value of the Level 3 items. (in millions) Maturity date Carrying value Estimated fair value Fair value level hierarchy 3.000% Notes 2026 $ 300 $ 299 Level 2 7.375% Debentures 2027 102 104 Level 2 3.450% Notes 2027 300 296 Level 2 5.125% Notes 2027 1,727 1,735 Level 2 4.375% Notes 2028 750 744 Level 2 Term Loan Credit Facility 2029 1,500 1,500 Level 3 2.625% Notes 2030 500 463 Level 2 5.250% Notes 2035 722 697 Level 2 19 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) 8. SUPPLEMENTAL FINANCIAL INFORMATION (in millions) June 30, 2026 December 31, 2025 Trade receivables $ 78 $ 98 Credit card receivables 208 152 Business partners 750 739 Taxes receivable — 6 Reinsurance receivable and losses recoverable 67 89 Other 115 65 Accounts and other receivables $ 1,218 $ 1,149 (in millions) June 30, 2026 December 31, 2025 Intangible assets, net $ 296 $ 296 Equity securities 393 457 Prepaid maintenance 316 299 Other 70 60 Other assets $ 1,075 $ 1,112 (in millions) June 30, 2026 December 31, 2025 Accounts payable trade $ 368 $ 389 Salaries, withholdings, and payroll taxes 540 563 Ticket taxes and fees 452 333 Aircraft maintenance payable 31 45 Fuel payable 232 157 Dividends payable 88 93 Third party services 165 201 Other payable 196 210 Accounts payable $ 2,072 $ 1,991 (in millions) June 30, 2026 December 31, 2025 Profit-sharing and savings plans $ 162 $ 157 Vacation pay 710 684 Health 204 206 Workers' compensation 270 242 Property and income taxes 83 73 Interest 27 27 Deferred supplier credits 9 24 Bonus pay 88 147 Reinsurance payable and losses payable 139 175 Aircraft maintenance 71 85 Advances and deposits 134 142 Other 350 387 Accrued liabilities $ 2,247 $ 2,349 20 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) (in millions) June 30, 2026 December 31, 2025 Postretirement obligation $ 321 $ 321 Other deferred compensation 443 512 Deferred co-brand revenue 408 429 Other 55 44 Other noncurrent liabilities $ 1,227 $ 1,306 Other Operating Expenses Other operating expenses consist of aircraft rentals, distribution costs, advertising expenses, personnel expenses, professional fees, certain technology-related costs, other operating costs, and any gains or losses on the disposition of assets, none of which individually exceeded 10 percent of Total operating expenses. For the three and six months ended June 30, 2026, gains on the disposition of assets totaled $105 million and $187 million, respectively. 9. COMMITMENTS AND CONTINGENCIES Commitments The Company's contractual order book with The Boeing Company ("Boeing") for 737-7 ("-7") and 737-8 ("-8") aircraft (together, the "MAX aircraft"), which extends to 2031, was designed to support the Company's growth and fleet modernization plans, while also providing significant flexibility and optionality to manage its fleet gauge and size, including opportunities to accelerate fleet modernization efforts. The Company received 13 -8 aircraft deliveries from Boeing in second quarter 2026 and retired 10 aircraft (including five 737-700 ("-700") aircraft and the sale of one -700 aircraft and four 737-800 ("-800") aircraft). In addition, during second quarter 2026, the Company exercised six -7 options for delivery in 2027. During the six months ended June 30, 2026, the Company converted 19 2026 deliveries from -7 to -8 firm orders. Boeing continues to experience delays in fulfilling its commitments with regards to delivery of MAX aircraft to the Company, primarily as a result of manufacturing challenges and delays in achieving Federal Aviation Administration ("FAA") certification of one of its new aircraft types, the -7, for which Southwest expects to be the launch customer. As a result of Boeing's delivery delays, the Company has previously replanned its capacity and delivery expectations multiple times and will continue to closely monitor the ongoing aircraft delivery delays with Boeing and further adjust expectations as needed. As of June 30, 2026, the Company had the following firm orders and options for future periods: The Boeing Company -7 Firm Orders -8 Firm Orders -7 or -8 Options Total 2026 82 85 — 167 (c) 2027 37 46 7 90 2028 15 50 25 90 2029 38 34 18 90 2030 45 — 45 90 2031 45 — 45 90 262 (a) 215 (b) 140 (b) 617 (a) The delivery timing for the -7 is dependent on the FAA issuing required certifications and approvals to Boeing and the Company. 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. 21 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) (b) The Company has flexibility to designate firm orders or options as -7s or -8s, upon written advance notification as stated in the contract. (c) Includes 23 -8 deliveries received year-to-date through June 30, 2026. In addition, the Company has included 81 of its 2024 and 2025 contractual but undelivered aircraft (27 -7s and 54 -8s) within its 2026 contractual commitments. The 2026 contractual detail is as follows: The Boeing Company -7 Firm Orders -8 Firm Orders Total 2024 Contractual Deliveries 27 — 27 2025 Contractual Deliveries — 54 54 2026 Contractual Deliveries 55 31 86 2026 Combined Contractual Total 82 85 167 Based on the Company's current agreement with Boeing, capital commitments associated with firm orders as of June 30, 2026, were: (in billions) Remainder of 2026 2027 2028 2029 2030 2031 Total Payments for capital commitments $ 3.9 (a) $ 3.0 $ 2.7 $ 2.5 $ 1.5 $ 1.2 $ 14.8 (a) Capital commitments associated with the Company's firm orders in 2026 of $3.9 billion include approximately $2.7 billion primarily related to the existing remaining scheduled 86 MAX aircraft to be delivered in 2026 and $1.2 billion related to 58 MAX aircraft (27 -7s and 31 -8s) that were contractually committed for 2024 and 2025, but were not received. Subsequent to June 30, 2026, and through July 23, 2026, the Company exercised two -7 options for delivery in 2027, resulting in an immaterial change to the Company's capital commitments noted above. Contingencies The Company is from time to time subject to various legal proceedings and claims arising in the ordinary course of business and records a liability for such claims when it is probable that a loss will be incurred and the amount is reasonably estimable. On December 27, 2019, a former Customer Service Agent at Oakland International Airport, filed a putative class action complaint in the Superior Court of California, for the County of Santa Clara, against the Company alleging the following seven claims under the California Labor Code and Business & Professions Code: (1) failure to provide meal periods; (2) failure to provide rest periods; (3) failure to pay hourly wages; (4) failure to provide accurate wage statements; (5) failure to timely pay all final wages; (6) unfair competition; and (7) civil penalties for the foregoing. Plaintiff filed a First Amended Complaint on October 15, 2021, that asserted the same causes of action and added a named plaintiff. The First Amended Complaint primarily seeks unpaid wages, interest thereon, and associated civil and statutory penalties, along with attorneys’ fees and costs. On February 26, 2025, the Court granted class certification as to the first cause of action for failure to provide meal periods, denied certification on the second through fourth causes of action, and granted certification on the fifth and sixth causes of action only insofar as they are predicated on the first cause of action. The certified class consists of all of the Company’s non-exempt ground Employees in California who worked a shift in excess of five hours for the time period between October 24, 2014, forward. On April 17, 2025, the Company filed a summary judgment motion arguing that Plaintiffs’ first cause of action, and all causes of action predicated thereon, failed as a matter of law. The motion was granted on July 25, 2025. Judgment was entered in favor of the Company on September 2, 2025, and Plaintiffs filed a notice of appeal on September 4, 2025. On May 6, 2026, Plaintiffs filed their opening appellate brief. The Company’s answering brief is due on August 4, 2026. The Company is currently not able to estimate a range of possible loss with regards to the litigation to which it is a defendant. 22 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) 10. DEBT Convertible Notes On May 1, 2020, the Company completed the public offering of $2.3 billion aggregate principal amount of Convertible Notes, bearing interest at a rate of 1.25 percent, payable semi-annually in arrears. The Company repurchased $689 million during the two year period ending December 31, 2022, and the remaining $1.6 billion principal amount of the Convertible Notes was repaid at maturity during second quarter 2025 utilizing available cash on hand. An immaterial amount of Convertible Note conversions settled at maturity. Payroll Support Program Loan due 2031 During 2020 and 2021, the Company entered into definitive documentation with the United States Department of the Treasury ("Treasury") with respect to payroll funding support ("Payroll Support") pursuant to three separate Payroll Support programs: the "PSP1 Payroll Support Program" in April 2020 under the Coronavirus Aid, Relief, and Economic Security Act; the "PSP2 Payroll Support Program” in January 2021 under the Consolidated Appropriations Act, 2021; and the "PSP3 Payroll Support Program" in April 2021 under the American Rescue Plan Act of 2021. As consideration for its receipt of funding under each of these Payroll Support programs, the Company issued promissory notes in favor of Treasury (each initially classified as a component of Long-term debt less current maturities in the unaudited Condensed Consolidated Balance Sheet). The note associated with the PSP1 Payroll Support Program was originally due in April 2030 but was redeemed early on April 17, 2025, in the amount of $976 million. The note associated with the PSP2 Payroll Support Program was originally due in January 2031 but was redeemed early on December 29, 2025, in the amount of $566 million. All payments were made utilizing available cash on hand. The note associated with the PSP3 Payroll Support Program was originally due in April 2031. On December 30, 2025, the Company made a partial prepayment on this note in the amount of $100 million. On April 22, 2026, the Company made an early prepayment of the outstanding loan balance of $426 million, utilizing available cash on hand. Term Loan Credit Agreement On March 11, 2026, the Company entered into a new term loan credit agreement (the "Term Loan Credit Agreement") with a third-party bank, providing for a $500 million senior secured term loan credit facility (the "Term Loan Facility") that was drawn in full on the closing date. The Term Loan Facility matures in full on March 11, 2029, and the Company has the right at any time to prepay the loans, in whole or in part, without premium or penalty, upon at least three business days’ prior written notice to the administrative agent. Amounts prepaid under the Term Loan Credit Agreement may not be reborrowed. Additionally, the Term Loan Facility includes an uncommitted incremental term loan feature allowing up to $1 billion in incremental term loan commitments to be established from time to time in accordance with the terms and conditions set forth in the Term Loan Credit Agreement. On May 19, 2026, the Company executed an upsize of the Term Loan Facility for $1 billion of incremental term loan commitments, and amended the incremental term loan feature to allow for an additional $1 billion more of available uncommitted funds. As of June 30, 2026, the Company had a total outstanding loan balance of $1.5 billion related to the Term Loan Credit Agreement. The Term Loan Facility is secured by a grant of a security interest in certain aircraft and related assets. Generally, amounts outstanding under the Term Loan Facility bear interest at interest rates based on either the Term SOFR (as defined in the Term Loan Credit Agreement) for designated interest periods selected by the Company or the Alternate Base Rate (as defined in the Term Loan Credit Agreement), plus an applicable margin. The underlying 23 Notes to Condensed Consolidated Financial Statements Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) Term SOFR is subject to a floor of 0.00% per annum, and the Alternate Base Rate is subject to a floor of 1.00% per annum. Revolving Credit Facility As of June 30, 2026, the Company had access to $1.5 billion under its amended and restated revolving credit facility (the "Amended Credit Agreement"), which expires in August 2028, reflecting the Company’s exercise of the accordion feature to increase the size of the facility on July 22, 2025. For the six months ended June 30, 2026 and 2025, there were no amounts outstanding under the Amended Credit Agreement. 24 Table of Contents