Southwest Airlines Co. and payments firm Klarna have entered into a long-term agreement to integrate Klarna’s financial services into the airline’s booking platform. The collaboration is scheduled to launch later this year for customers located in the United States.
Under the terms of the deal, travelers booking directly through Southwest’s website or mobile application will have access to multiple payment structures. Options include paying the full amount at the time of booking, dividing the cost into four interest-free installments, or utilizing longer-term financing plans for the trip.
The partnership comes as Southwest continues to manage its operations as one of the largest carriers in the United States. In 2025, the airline transported more than 134 million passengers. At the end of that year, the company operated a fleet of 803 aircraft and employed approximately 73,400 people. The majority of the airline’s net sales, roughly 91 percent, are derived from passenger transport, with freight and other activities accounting for the remainder.
Financial markets have shown recent activity surrounding Southwest Airlines stock. On July 7, 2026, the stock traded at 49.38 USD on the Cboe BZX exchange, reflecting a 2.80 percent decline over the preceding five days. Over the course of the year, the stock has risen by 19.59 percent. The company’s market capitalization stands at 24.83 billion USD.
Several financial institutions have recently adjusted their price targets for Southwest Airlines. Argus Research raised its target to 60 USD from 45 USD. Deutsche Bank and Morgan Stanley also set targets at 60 USD and 65 USD, respectively. Other analysts, including Susquehanna, TD Cowen, BMO Capital, and BofA Securities, have issued varying targets and ratings, while Goldman Sachs maintained a sell rating with a 35 USD target.
Separately, industry reports indicate that fuel costs for US airlines increased by 3 billion USD in May. Klarna Group PLC, the partner company, saw its stock decline by 4.25 percent over the same five-day period, trading at 19.36 USD with a market capitalization of 7.52 billion USD.
