LUV Southwest Airlines margins

Relative Growth: Rel. Growth: 90

Relative Strength: Rel. Strength: 60

Relative Valuation: Rel. Valuation: 90

Relative Profitability: Rel. Profitability: 77

Gross margin

66.4%

Operating margin

4.4%

EBITDA margin

10%

Net margin

3.3%

Current Southwest Airlines reports a gross margin of 66.4%, an operating margin of 4.4%, an EBITDA margin of 10%, and a net margin of 3.3%. Operating margin increased the most, by 3.3 percentage points, while gross margin fell the most, by 2.6 percentage points.

LUV margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Southwest Airlines's margins averaged 67.04% gross, 1.43% operating, 8.75% EBITDA, and 1.7% net. Currently, operating, EBITDA, and net margins are above their three-year averages, while gross margin is below its three-year average.

LUV margin expansion

Year-over-year margin changes in percentage points

Operating margin expanded by 3.3 percentage points, EBITDA margin by 1.8 percentage points, and net margin by 1.9 percentage points, but gross margin contracted by 2.6 percentage points.

Gross margin expansion

-2.6pp

Operating margin expansion

3.3pp

EBITDA margin expansion

1.8pp

Net margin expansion

1.9pp

LUV Gross margin

Across the last 3 years, Southwest Airlines recorded an average gross margin of 67.04%. Southwest Airlines's current gross margin is 66.4% and is 0.6 percentage points below its three-year average. The highest gross margin for Southwest Airlines was 69.6% in Mar 2026, while the lowest was 64.2% in Jun 2024.

LUV Operating margin

The average operating margin for Southwest Airlines was 1.43% during the last 3 years. Southwest Airlines's current operating margin is 4.4% and is 3 percentage points above its three-year average. The operating margin for Southwest Airlines moved between -1.3% in Sep 2024 and 4.4% in Sep 2026.

LUV EBITDA margin

The average EBITDA margin for Southwest Airlines was 8.75% in the last 3 years. The latest EBITDA margin for Southwest Airlines is 10%, 1.3 percentage points above its three-year average. The EBITDA margin for Southwest Airlines moved between 7% in Sep 2024 and 10% in Sep 2026.

LUV Net margin

Across the last 3 years, Southwest Airlines's net margin stood at 1.7%. Southwest Airlines's current net margin is 3.3% and is 1.6 percentage points above its three-year average. Net margin was highest at 3.3% in Sep 2026 and lowest at -0.2% in Sep 2024.

LUV margin group comparison

Margins compared with peer-group, industry and sector averages

Southwest Airlines's gross margin of 66.4% is above the Industrials sector, the industry and its peers average. Compared to its Industrials sector average of 32.5%, Southwest Airlines's gross margin is 104% higher.

LUV margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Southwest Airlines's gross margin?

For the period ending Sep 30, 2026, LUV recorded a gross margin of 66.4%.

What is Southwest Airlines's operating margin?

The current operating margin for LUV is 4.4% as of Sep 30, 2026.

What is Southwest Airlines's EBITDA margin?

As of Sep 30, 2026, LUV has an EBITDA margin of 10%.

What is Southwest Airlines's net margin?

As of Sep 30, 2026, LUV has a net margin of 3.3%.

What are the average margins of LUV?

Over the past 3 years, LUV reported average margins of 67.0% gross, 1.4% operating, 8.8% EBITDA, and 1.7% net.

What are the highest historical margins of LUV?

Over this 5-year history, LUV peaked at 69.6% gross in Mar 2026, 10.9% operating in Dec 2021, 19.4% EBITDA in Dec 2021, and 6.2% net in Dec 2021.

What are the lowest historical margins of LUV?

Over the last 5 years, Southwest Airlines's lowest margins were 63.9% gross in Mar 2023, -1.3% operating in Sep 2024, 7% EBITDA in Sep 2024, and -0.2% net in Sep 2024.