Southwest Airlines Company (LUV)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 2,732,000 | 4,879,000 | 4,792,000 | 4,913,000 | 4,833,000 | 5,029,000 | 4,950,000 | 5,007,000 | 4,850,000 | 4,715,000 | 4,215,000 | 2,750,000 | 1,343,000 | 2,614,000 | 864,000 | -1,330,000 | 223,000 | 3,939,000 | 6,815,000 | 10,470,000 |
| Revenue (ttm) | US$ in thousands | 27,401,000 | 27,239,000 | 26,858,000 | 26,481,000 | 25,856,000 | 25,202,000 | 24,805,000 | 24,431,000 | 23,395,000 | 22,240,000 | 20,744,000 | 18,041,000 | 15,380,000 | 12,435,000 | 9,655,000 | 6,763,000 | 9,048,000 | 12,764,000 | 16,610,000 | 21,511,000 |
| Gross profit margin | 9.97% | 17.91% | 17.84% | 18.55% | 18.69% | 19.95% | 19.96% | 20.49% | 20.73% | 21.20% | 20.32% | 15.24% | 8.73% | 21.02% | 8.95% | -19.67% | 2.46% | 30.86% | 41.03% | 48.67% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,732,000K ÷ $27,401,000K
= 9.97%
The gross profit margin of Southwest Airlines Company has experienced fluctuations over the specified period. It started at a healthy level of 48.67% in March 2020 but saw a significant decline to 2.46% by December 2020, indicating a potential challenge in managing production costs relative to revenue during that time.
The subsequent quarters showed varying levels of recovery and instability, with March 2021 showing a negative margin of -19.67%, likely due to the severe impact of the COVID-19 pandemic on the airline industry. However, the company began to gradually improve its gross profit margin, reaching 20.32% by June 2022.
Despite some fluctuations, the gross profit margin generally stabilized around the range of 18-21% from September 2023 to September 2024, indicating some consistency in the company's ability to generate profits after overcoming the challenges faced. The notable drop to 9.97% by December 2024 might require further analysis to understand the underlying reasons and implications for Southwest Airlines' financial performance.
Peer comparison
Dec 31, 2024