Southwest Airlines Co (LUV) FinancialsLUVSouthwest Airlines Co

Evaluating the bottom line, Southwest Airlines Co maintains a gross margin of 58.28%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 7.28%, 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 $19.25B, it holds a leading position in the sector. When comparing efficiency, LUV's gross margin of 58.28% 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.

The company has shown a strong revenue growth trend, with Q2 2026 revenue reaching $8.43 billion, up from $6.42 billion in Q1 2025. The gross margin is currently at 58.28%, which is lower than previous quarters but still indicates profitability.