SOUTHWEST AIRLINES CO (LUV) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that SOUTHWEST AIRLINES CO surfaced in its latest filing.

• The Company terminated its remaining fuel hedge positions in second quarter 2025 and does not intend to add new fuel derivatives.2025
• Winter Storm Fern adversely impacted operations.January 2026
• Hurricane Milton adversely impacted operations.October 2024
• Winter Storm Elliott adversely impacted operations, including operational recovery and crew scheduling.December 2022
• 2025 Los Angeles wildfires are examples of localized disasters affecting operations.2025
• 2023 Maui wildfires are examples of localized disasters affecting operations.2023
• 2025 Newark outages and September 2025 Dallas outages caused air traffic controllers to lose radar and communications.September 2025
• FAA's March 2019 grounding of all Boeing 737 MAX aircraft.March 2019
• In November 2025 during the partial government shutdown, the FAA issued an emergency order mandating an industry-wide reduction in flights at 40 major U.S. airports.November 2025
• The Company began service to Hawaii after receiving FAA approval for ETOPS.2019
• The Company offered a voluntary separation program to certain Employees.2024
• The Company implemented a reduction in workforce.2025
• In 2020 the Company offered voluntary separation and extended time-off programs to Employees, which negatively impacted staffing when leisure travel demand returned.2020
• The next union agreement becomes amendable.October 2026
• The Company has entered into interline partnership agreements with Icelandair, China Airlines, EVA Air, Philippine Airlines, Condor, and Turkish Airlines.
• Bylaws designate the United States District Court for the Northern District of Texas or, if lacking jurisdiction, the Texas Business Court in Dallas County as exclusive forum for derivative actions, fiduciary duty claims, and internal entity claims under the TBOC.
• Bylaws require shareholders to beneficially own at least 3% of outstanding shares to maintain a derivative proceeding.
• Bylaws designate federal district courts as the exclusive forum for claims under the Securities Act of 1933.
• Shareholders are deemed to waive jury trial rights for internal entity claims and other claims against the Company or its directors, officers, or employees.