Southwest Airlines Achieves Reductions in FX Margins With Redbridge
TRANSPORTATION
NORTH AMERICA
CASH MANAGEMENT
Southwest Airlines Co. operates one of the world’s most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 117 airports across 11 countries1. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline2.
Challenge
Southwest Airlines first engaged Redbridge in 2017, and recently partnered with Redbridge again to evaluate contracts, rates, and margins on banking services.
Solution
Working closely with the Southwest Treasury team, Redbridge analyzed service fees and rates – including yield and FX margins – across three banking partners. They developed negotiation materials with targeted rates aligned to Southwest’s business profile, transaction volumes, and currency needs, and supported negotiations to restructure the FX arrangement to a fixed, market-aligned spread with three-year pricing.
Results
Reductions in FX Margins
As a result, Southwest achieved reductions in FX margins and secured three-year pricing commitments from its banking partners.
1. As of December 31, 2025
2. Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q2 2025
“With Redbridge’s support we negotiated improved FX terms that are directly contributing to cost savings.”
Jeff Campbell
Treasury Director, Southwest Airlines