Southwest Airlines Co. (LUV) — Analysis Summary
Southwest Airlines Co. (LUV) has a market cap of $23.42B with year-over-year revenue growth of +2.1%. Net margin stands at 1.6%. The stock trades at a P/E ratio of 28.7.
Key Takeaways
- Revenue changed +2.1% year-over-year
- Net margin of 1.6%
- P/E ratio of 28.7
Compared to other companies in the AIR TRANSPORTATION, SCHEDULED sector, LUV posted revenue growth of +2.1% and trades at a P/E of 28.7.
Southwest Airlines Co. (LUV)
UPDATED — ET · SOURCE POLYGON
Red Flags & WarningsHigh Risk Signals
Multiple material red flags are active and deserve closer underwriting before relying on any valuation output.
Current ratio at 0.48x — severe short-term liquidity risk
Operating margin (3.4%) exceeds gross margin (0.0%) — check for other operating income or data classification issues
The latest filing shows negative free cash flow.
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
Sector
AIR TRANSPORTATION, SCHEDULED
Employees
73,401
Headquarters
DALLAS, TX
Exchange
XNYS
Systematic competitive advantage assessment based on 4yr data
This assessment is based on quantitative analysis of historical financial data and does not constitute investment advice. Moat ratings may change with industry and competitive dynamics.
First version surfaces recent SEC Forms 3, 4, and 5 activity. It does not yet parse individual buy/sell transactions.
Capital Structure
Cash Flow
Annual Dividend/Share
$0.72
Dividend Yield
1.51%
Dividend History
Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.