Southwest Airlines Co. (luv)
LUV — Company Overview
Investors tracking LUV follow a Airlines name listed on NYQ within Industrials.
| Ticker | LUV |
| Sector | Industrials |
| Industry | Airlines |
| Exchange | NYQ |
| Market cap | $20.08B |
| Last price | $41.04 |
| Size category | Large Cap |
LUV — Business Description
The business profile of Southwest Airlines Co. (LUV) reflects its role in Airlines. Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft;…
Official website: https://www.southwest.com.
LUV — Investment Thesis
Southwest Airlines Co. (LUV) attracts investors weighing Airlines fundamentals against current market pricing.
- Revenue is expanding at roughly 16.4% year-over-year (public data).
- Trailing P/E of 25.49× sits in a moderate band relative to high-growth peers.
- Forward P/E (8.68×) is below trailing P/E — earnings may be expected to improve.
- Dividend yield near 1.7% adds an income component to total return.
- Equity market capitalization is approximately $20.08B.
See the free estimates and earnings pages for public targets and growth metrics. Ownership, live news, and deeper models remain in Vest Terminal.
LUV — Financial Health
LUV financial profile reflects operating efficiency and capital structure using available market fundamentals.
Profit margin near 2.8% leaves a narrower cushion versus higher-margin peers. Negative free cash flow of $-834.75M may require careful capital allocation.
| Trailing P/E | 25.49× |
| Forward P/E | 8.68× |
| Price / Sales | 0.67× |
| Price / Book | 2.84× |
| Gross margin | 22.4% |
| Operating margin | 3.4% |
| Profit margin | 2.8% |
| Return on equity | 11.1% |
| Debt / Equity | 97.28 |
| Free cash flow | $-834.75M |
LUV — Growth Outlook
Growth outlook for Southwest Airlines Co. (LUV) depends on demand trends in Airlines and the company's ability to convert revenue into sustainable earnings.
- Revenue growth of 16.4% indicates strong top-line momentum.
- Earnings growth of 20.5% year-over-year supports improving profitability.
- Price is 25.5% below the 52-week high.
LUV — Competitive Position
Southwest Airlines Co. (LUV) is evaluated against peers on scale, margin structure, and capital efficiency within Industrials.
- Competes within Industrials, specifically in Airlines.
- Market capitalization of $20.08B places LUV among large-cap peers.
- Gross margin of 22.4% should be benchmarked against direct competitors.
LUV — Strengths
Strengths for Southwest Airlines Co. (LUV) inferred from public financial metrics:
- Revenue growth of 16.4% year-over-year.
- Earnings growth of 20.5% year-over-year.
- Dividend yield of 1.7% for income-oriented holders.
- Large Cap scale ($20.08B) may provide distribution and funding advantages.
LUV — Weaknesses
Weaknesses and pressure points for Southwest Airlines Co. (LUV) based on available data:
- Thin profit margin (2.8%).
- Negative free cash flow ($-834.75M).
- Price 26% below the 52-week high — sustained negative sentiment.
LUV — Opportunities
- Sustained revenue growth (16.4%) could support multiple expansion if margins hold.
- Forward earnings multiple below trailing P/E — potential earnings acceleration ahead.
LUV — Risks
- Thin margins leave less room for operational missteps.
LUV — Summary
Southwest Airlines Co. (LUV) is a large-cap Industrials company focused on Airlines, listed on NYQ. Last price $41.04 with market cap $20.08B. Trailing P/E 25.49×. Revenue grew 16.4% year-over-year per public data. Notable strengths include revenue growth of 16.4% year-over-year. Key watch items include thin profit margin (2.8%). Review free estimates and earnings pages for LUV; upgrade for institutional ownership and live headlines.
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Southwest Airlines Co. FAQ
What does Southwest Airlines Co. (LUV) do?
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that i…
What is LUV's P/E ratio?
Southwest Airlines Co. has a trailing P/E of 25.49× based on publicly available market data.
Does LUV pay a dividend?
Indicated dividend yield: 1.7%. Confirm ex-dates and payout history in Vest Terminal.
What sector is LUV in?
Southwest Airlines Co. is classified in Industrials (Airlines) on NYQ.
What is LUV's market capitalization?
Approximate market cap: $20.08B.
What are the main risks for LUV?
Standard market, competitive, and execution risks apply; see the Risks section.
What are the strengths of LUV?
Potential positives include revenue growth of 16.4% year-over-year, earnings growth of 20.5% year-over-year.
Where can I get analyst estimates for LUV?
Public analyst price targets and consensus for Southwest Airlines Co. are on the free /stocks/luv/estimates page. Deeper estimate history and models are available in Vest Terminal.