Southwest Airlines Co. (NYSE: LUV) entered into a credit agreement amendment on May 19, 2026, extending additional financing through incremental term loans totaling $1 billion.

The amendment modifies the company's existing term loan credit agreement from March 11, 2026, which originally established $500 million in term loans. Following the amendment, Southwest Airlines' total outstanding principal amount under the term loan facility reaches $1.5 billion.

The new incremental term loans carry the same interest rates and terms as the existing facility. All term loans under the amended agreement mature on March 11, 2029, with Southwest Airlines maintaining the right to prepay without penalty upon three business days' notice. Prepaid amounts cannot be reborrowed.

The financing is secured by aircraft and related assets, with the amendment adding additional aircraft to the collateral pool while maintaining minimum collateral coverage ratio requirements. Southwest Airlines can supplement, replace or remove collateral assets subject to certain conditions.

The amended agreement also permits up to $1 billion in additional incremental term loan commitments to be established after the effective date, subject to terms and conditions outlined in the agreement. BNP Paribas serves as administrative and collateral agent for the lenders.

Southwest Airlines' existing revolving credit facility remains unchanged under the amendment, according to the company's statement.