Is Southwest Cargo a subsidiary of Southwest Airlines?

No. Southwest Cargo is a brand division of Southwest Airlines Co., not a separately incorporated subsidiary. It operates as an internal business unit selling freight capacity on the passenger fleet, and its results are consolidated into the parent company's financials.

Is Southwest Cargo publicly traded?

Not directly. The division is part of Southwest Airlines Co., which trades on the New York Stock Exchange under ticker LUV. Investors cannot buy shares in the cargo business separately.

When was Southwest Cargo founded?

Southwest Airlines has carried air freight since the airline's early decades of operation beginning in 1971, and the cargo business was formalized into the dedicated Southwest Cargo brand and organization in later years. It has always been an internal business, never an acquisition.

Who founded Southwest Cargo?

Southwest Cargo was developed internally by Southwest Airlines rather than founded by individuals. It grew out of the passenger airline's practice of selling unused belly space on scheduled flights.

What is Southwest Cargo's market position?

Southwest Cargo is a mid-tier participant in US domestic belly cargo, strong on high-frequency lanes where Southwest runs many daily flights but smaller than the cargo divisions of the three legacy carriers. It does not compete in the dedicated freighter segment dominated by FedEx and UPS.

Does Southwest Cargo fly to international destinations?

Yes, but only where the passenger airline flies and customs facilities exist. That includes points in Mexico, Central America, and the Caribbean. The division has no freighter network of its own.

Transportation & Logistics

Who Owns Southwest Cargo?

Southwest Cargo is the air freight and logistics division of Southwest Airlines Co. (NYSE: LUV). It sells cargo space in the belly holds of Southwest's more than 800 Boeing 737 passenger aircraft, offering same-day and next-flight-out shipping across the airline's network of more than 120 destinations. The division operates from Southwest's headquarters in Dallas, Texas.

Parent Company

Southwest Airlines

Founded

1971

Status

Publicly Traded

Headquarters

Dallas, Texas, USA

Southwest Cargo Timeline

1967

Southwest Airlines

Parent company established in Dallas, Texas, USA

Company Founded

1971

Southwest Cargo

Founded by Southwest Airlines Co. (internal development)

Founded

United StatesOfficial Website

Who Owns Southwest Cargo?

Parent Company: Southwest Airlines
Ownership Type: Brand division
Company Type: Publicly Traded
Stock Ticker: New York Stock Exchange: LUV

Brand	Parent Company	Ownership Type
Southwest Cargo	Southwest Airlines	Brand division

History of Southwest Cargo

Founded: 1971
Founders: Southwest Airlines Co. (internal development)

Southwest Airlines has carried freight in the belly holds of its Boeing 737s since the airline's early years, a standard practice in passenger aviation where unused cargo space generates incremental revenue on flights that operate anyway. For decades the business was small and secondary to passenger operations, reflecting Southwest's focus on short-haul, quick-turnaround flying.

The dedicated cargo organization matured during the 2000s and 2010s as Southwest's network grew large enough to interest freight customers. The airline formalized the Southwest Cargo brand, built a sales and ground handling organization, and launched swacargo.com as its booking and tracking portal. Product tiers developed around speed: Next Flight Guaranteed service for urgent shipments, standard freight service, and specialized handling for perishables, pharmaceuticals, and live animals.

The 2011 AirTran acquisition indirectly benefited cargo by adding Atlanta, the country's busiest airport, and international stations in Mexico and the Caribbean. Southwest began selling cargo into those international markets, using customs facilities at key gateways.

The pandemic period raised the profile of belly cargo across the industry. With passenger schedules reduced and freight demand surging, cargo revenue became a more visible contributor, and Southwest invested in digital booking through its swacargo.com portal and API integrations with freight forwarders. In the mid-2020s the division continued expanding products including expedited airport-to-airport service and partnerships with logistics companies that position freight at Southwest stations.

Cargo remains a small share of Southwest's $28.1 billion FY2025 revenue base, but it is a high-margin contributor because it monetizes capacity that would otherwise fly empty.

About Southwest Airlines

What does Southwest Airlines own?
Southwest Airlines owns a portfolio of aviation brands including Southwest Airlines (core passenger airline service), Southwest Cargo (air cargo and logistics), and Southwest Vacations (vacation packages and travel services). The company previously owned AirTran Airways, which it acquired in 2011 for approximately $1.4 billion and fully integrated by 2014. Southwest operates a fleet of over 800 Boeing 737 aircraft.

Is Southwest Airlines publicly traded?
Yes. Southwest Airlines is publicly traded on the New York Stock Exchange under ticker LUV. The company has been publicly traded since its IPO in 1977 and is owned by its shareholders, with no single controlling shareholder. Major institutional shareholders include Vanguard Group and BlackRock.

Who founded Southwest Airlines?
Southwest Airlines was founded in 1967 by Rollin King and Herb Kelleher. King, a San Antonio businessman, conceived the idea for a low-cost intrastate airline serving Texas. Kelleher, an attorney, provided the legal and strategic leadership that guided the company through years of legal challenges before its first flight in 1971. Kelleher served as CEO from 1982 to 2001 and remained Chairman until 2008.

Where is Southwest Airlines headquartered?
Southwest Airlines is headquartered at Dallas Love Field in Dallas, Texas, USA. The company has maintained its headquarters at Love Field since its founding and operates its primary hub from this location. Major operational bases include Chicago Midway, Baltimore/Washington, Las Vegas, Phoenix, Denver, and Houston Hobby.

What is Southwest Airlines' revenue?
Southwest Airlines reported full-year 2025 operating revenues of $28.1 billion and net income of $441 million, or $0.73 per diluted share. Fourth quarter 2025 operating revenues were $6.9 billion. The company generated record full-year 2025 operating cash flow of $3.2 billion and returned $597 million to shareholders through share repurchases.

What changes is Southwest making in 2026?
Southwest is implementing the most significant changes in its history in 2026. Assigned seating replaced the airline's long-standing open seating policy for travel starting January 27, 2026. The airline introduced extra legroom seats as a premium product. New fare bundles, including a basic economy fare, were created to compete with ultra-low-cost carriers. Red-eye flights were added to expand aircraft utilization. These changes are part of a business transformation expected to generate $1.5 to $2.0 billion in incremental annual EBITDA by 2027.

Who leads Southwest Airlines?
Bob Jordan serves as President and CEO of Southwest Airlines, having assumed the role in February 2022. Jordan has been with Southwest since 1989 and previously served as Executive Vice President of Corporate Services and as President of AirTran Airways. He replaced Gary Kelly, who moved to Executive Chairman before announcing his departure under pressure from activist investor Elliott Investment Management.

Founded: 1967
Headquarters: Dallas, Texas, USA
Company Type: Publicly Traded
Stock: New York Stock Exchange: LUV
Revenue: $28.1 billion (FY2025)
Employees: approximately 73,077

Visit Southwest Airlines website

View full company profile for Southwest Airlines

Where Is Southwest Cargo Made / Based?

Headquarters: Dallas, Texas, USA

Southwest Cargo Categories & Tags

Air Cargo Freight Logistics Southwest Airlines Air Freight

Southwest Cargo Ownership: Pros & Cons

Advantages

+Monetizes existing belly capacity with minimal incremental cost
+Dense domestic schedule gives shippers frequency on major lanes
+Backed by the airline's investment-grade balance sheet and 120-plus destination network
+High-margin ancillary revenue stream for the parent

Considerations

-Narrow-body 737 belly space limits shipment size and weight
-No freighter aircraft, so cargo cannot outgrow passenger capacity
-Freight priority sits below passengers and baggage during irregular operations
-Network limited to Southwest's US-focused route map

Frequently Asked Questions About Southwest Cargo

Sources & Further Reading

Competitors to Southwest Cargo

These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.

Brand	Parent Company	Country	Founded	Market Position	Primary Market	Gender Target
Delta Cargo	Delta Air Lines	USA	1928	Mass market	Global	All Genders
Union Pacific	Union Pacific	USA	1862	Mass market	United states	All Genders