LUVSouthwest Airlines

$40.68

Is it safe?

Can LUV take a bad year?

Southwest Airlines carries $2.15B of net debt at 0.83× EBITDA: a load its earnings can carry.

$2.15B

Net debt · as at Q2 2026 · under two and a half years of EBITDA, comfortable

Net debt / EBITDA
0.83×

Net debt / EBITDA · 0.14× a year ago · the load is going up

Altman Z-score
2.31

Altman Z-score · grey zone, between 1.8 and 3

Cash runway
5+ years

Cash runway · burning $114M a quarter at the current rate

Details
Total debtQ2 2026
$5.95B
Cash and short-term investments
$3.79B
Net debt
$2.15B
EBITDA, trailing twelve months
$2.61B
Operating profit, trailing twelve months
$1.04B
Debt / equity
0.84×
Total debt / EBITDA
2.28×
Annualised volatilitytwo years of daily moves
43%
Worst drawdown on file
−65%
Below its 52-week high
−25%

Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.