Southwest Airlines Co (LUV) FinancialsLUVFinancialSouthwest Airlines Co

Evaluating the bottom line, Southwest Airlines Co maintains a gross margin of 57.93%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 6.94%, while the net margin is 2.76%. These profitability ratios, combined with a Return on Equity (ROE) of 11.10%, provide a clear picture of how effectively LUV converts its operational activities into shareholder value.

In the context of the broader market, LUV competes directly with industry leaders such as VLRS and AAL. With a market capitalization of $19.39B, it holds a leading position in the sector. When comparing efficiency, LUV's gross margin of 57.93% stands against VLRS's 100.00% and AAL's 53.61%. Such benchmarking helps identify whether Southwest Airlines Co is trading at a premium or discount relative to its financial performance.

In the most recent quarter (2026/Q2), Southwest Airlines reported a net income of $233 million and a gross margin of 57.93%. The company has shown resilience with a year-over-year revenue increase, but the current ratio is low at 0.49, indicating potential liquidity issues.