Thursday, Southwest said the meltdown cost the airline about $800 million, resulting in an adjusted net loss in the quarter of $226 million. Still, it managed to report an adjusted annual profit of $723 million, a turnaround from $1.3 billion it lost in 2021 amid the pandemic.

Yes, Southwest Airlines has lost money, most notably during the global disruptions of the early 2020s and in its recent 2025/2026 fiscal cycles. For nearly 47 consecutive years, Southwest was famous for its unbroken streak of profitability—a record unheard of in the volatile aviation industry. However, this streak ended in 2020 due to the COVID-19 pandemic. More recently, in early 2026, Southwest reported a significant drop in net profit compared to previous years, largely due to rising labor costs, a major software overhaul, and the financial ripple effects of ending its iconic open-seating model. While the airline remains financially stable compared to many of its competitors, the "invincible" aura of Southwest's balance sheet has softened in the mid-2020s. In 2026, management is focused on a "Turnaround Plan" involving assigned seating and premium cabins to regain its footing. While it still manages to stay "in the black" more often than not, the days of its half-century-long perfect profit record are now a part of history rather than current reality.