LUV Southwest Airlines margins

Relative Growth: Rel. Growth: 80

Relative Strength: Rel. Strength: 44

Relative Valuation: Rel. Valuation: 86

Relative Profitability: Rel. Profitability: 70

Gross margin

67.8%

Operating margin

3.5%

EBITDA margin

9.4%

Net margin

2.8%

Current Southwest Airlines reports a gross margin of 67.8%, an operating margin of 3.5%, an EBITDA margin of 9.4%, and a net margin of 2.8%. Operating margin increased the most, by 2.3 percentage points, while gross margin fell the most, by 0.9 percentage points.

LUV margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Southwest Airlines's margins averaged 66.93% gross, 1.14% operating, 8.69% EBITDA, and 1.59% net. Compared with their three-year averages, all four current margins are higher.

LUV margin expansion

Year-over-year margin changes in percentage points

Operating margin expanded by 2.3 percentage points, EBITDA margin by 0.8 percentage points, and net margin by 1.4 percentage points, but gross margin contracted by 0.9 percentage points.

Gross margin expansion

-0.9pp

Operating margin expansion

2.3pp

EBITDA margin expansion

0.8pp

Net margin expansion

1.4pp

LUV Gross margin

Across the last 3 years, Southwest Airlines recorded an average gross margin of 66.93%. Southwest Airlines's current gross margin is 67.8% and is 0.9 percentage points above 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 1.14% during the last 3 years. Southwest Airlines's current operating margin is 3.5% and is 2.4 percentage points above its three-year average. The operating margin for Southwest Airlines moved between -1.3% in Sep 2024 and 3.5% in Jun 2026.

LUV EBITDA margin

The average EBITDA margin for Southwest Airlines was 8.69% in the last 3 years. The latest EBITDA margin for Southwest Airlines is 9.4%, 0.7 percentage points above its three-year average. The EBITDA margin for Southwest Airlines moved between 7% in Sep 2024 and 9.6% in Mar 2026.

LUV Net margin

Across the last 3 years, Southwest Airlines's net margin stood at 1.59%. Southwest Airlines's current net margin is 2.8% and is 1.2 percentage points above its three-year average. Net margin was highest at 2.8% in Jun 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 67.8% is above the Industrials sector, the industry and its peers average. Compared to its Industrials sector average of 32.7%, Southwest Airlines's gross margin is 107% higher.

LUV margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Southwest Airlines's gross margin?

For the period ending Jun 30, 2026, LUV recorded a gross margin of 67.8%.

What is Southwest Airlines's operating margin?

The current operating margin for LUV is 3.5% as of Jun 30, 2026.

What is Southwest Airlines's EBITDA margin?

As of Jun 30, 2026, LUV has an EBITDA margin of 9.4%.

What is Southwest Airlines's net margin?

As of Jun 30, 2026, LUV has a net margin of 2.8%.

What are the average margins of LUV?

Over the past 3 years, LUV reported average margins of 66.9% gross, 1.1% operating, 8.7% EBITDA, and 1.6% 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 62.3% gross in Sep 2021, -1.3% operating in Sep 2024, 7% EBITDA in Sep 2024, and -0.2% net in Sep 2024.