A Business at a Glance
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Company Overview Southwest Airlines Co. (the “Company” or “Southwest”) operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. Southwest commenced service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities: Dallas, Houston, and San Antonio. Southwest’s unique route network, competitive fares, and famous Hospitality continue to make the Company an attractive choice for Customers in cities across the United States and near-international destinations. As of December 31, 2025, Southwest had a total of 803 Boeing 737 aircraft in its fleet and served 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 28.1B | 28.1B | 27.5B | 26.1B | 23.8B | 15.8B |
| Net Income | 442M | 442M | 485M | 484M | 561M | 977M |
| EPS | $0.79 | $0.79 | $0.76 | $0.76 | $0.87 | $1.61 |
| Free Cash Flow | -831M | -831M | -1.6B | -356M | -134M | 1.8B |
| ROIC | 3.1% | 3.5% | 3.0% | 2.2% | 11.2% | 15.2% |
| Gross Margin | 54.4% | 54.4% | 78.9% | 76.2% | 74.9% | 79.0% |
| Debt/Equity | 0.75 | 0.75 | 0.78 | 0.87 | 0.88 | 1.18 |
| Dividends/Share | $0.71 | $0.72 | $0.72 | $0.72 | $0.18 | $0.18 |
| Operating Income | 428M | 428M | 321M | 224M | 1.0B | 1.7B |
| Operating Margin | 1.5% | 1.5% | 1.2% | 0.9% | 4.3% | 10.9% |
| ROE | 5.5% | 4.8% | 4.6% | 4.6% | 5.3% | 10.1% |
| Shares Outstanding | 559M | 559M | 638M | 637M | 645M | 607M |
SOUTHWEST AIRLINES CO passes 4 of 9 quality checks, suggesting mixed fundamentals.
SOUTHWEST AIRLINES CO trades at 49.9x trailing earnings, compared to its 15-year median P/E of 24.4x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 7.0% with a gross margin of 72.7%. Total shareholder yield (dividends + buybacks) is 13.4%. At current prices, the estimated annualized return to fair value is -23.6%.
SOUTHWEST AIRLINES CO (LUV) has a current P/E ratio of 49.9, compared to its historical median P/E of 24.4. The stock is currently considered Expensive based on its historical valuation range.
SOUTHWEST AIRLINES CO (LUV) has a 5-year average return on invested capital (ROIC) of 7.0%. This is below average and may indicate limited pricing power.
SOUTHWEST AIRLINES CO (LUV) has a market capitalization of $22.1B. It is classified as a large-cap stock.
Yes, SOUTHWEST AIRLINES CO (LUV) pays a dividend with a trailing twelve-month yield of 1.81%. The company also returns capital through share buybacks, with a buyback yield of 11.55%.
Based on historical P/E analysis, SOUTHWEST AIRLINES CO (LUV) appears expensive. The current P/E of 49.9 is 104% above its historical median of 24.4. The estimated fair value CAGR (P/E method) is -31.6%.
SOUTHWEST AIRLINES CO (LUV) operates in the Air Transportation, Scheduled industry, within the Industrials sector.
SOUTHWEST AIRLINES CO (LUV) reported annual revenue of $28.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
SOUTHWEST AIRLINES CO (LUV) has a net profit margin of 1.6%. This is a modest margin.
SOUTHWEST AIRLINES CO (LUV) generated $-831 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
SOUTHWEST AIRLINES CO (LUV) has a debt-to-equity ratio of 0.75. This indicates moderate leverage.
SOUTHWEST AIRLINES CO (LUV) reported earnings per share (EPS) of $0.79 in its most recent fiscal year.
SOUTHWEST AIRLINES CO (LUV) has a return on equity (ROE) of 4.8%. This indicates moderate shareholder returns.
SOUTHWEST AIRLINES CO (LUV) has a 5-year average gross margin of 72.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for SOUTHWEST AIRLINES CO (LUV), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SOUTHWEST AIRLINES CO (LUV) has a book value per share of $14.26, based on its most recent annual SEC filing.