Southwest Airlines Company (LUV)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 465,000 | 465,000 | 539,000 | 977,000 | -3,074,000 |
| Revenue | US$ in thousands | 27,482,000 | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 |
| Net profit margin | 1.69% | 1.80% | 2.31% | 6.35% | -33.97% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $465,000K ÷ $27,482,000K
= 1.69%
The net profit margin of Southwest Airlines Company has shown fluctuations over the years, indicating changes in the company's profitability. In 2020, the net profit margin posted a significant decline of -33.97%, which could be attributed to various external factors such as the impact of the COVID-19 pandemic on the airline industry. However, the company managed to recover in 2021, achieving a positive net profit margin of 6.35%.
In the following years, Southwest Airlines' net profit margin continued to decrease gradually, reaching 2.31% in 2022, 1.80% in 2023, and 1.69% in 2024. These decreasing trends suggest potential challenges in maintaining profitability levels, possibly due to rising costs or competitive pressures impacting the company's financial performance.
Overall, while Southwest Airlines demonstrated resilience by returning to profitability post-2020, the subsequent downward trend in net profit margin highlights the importance of closely monitoring operational efficiency and cost management strategies to sustain and improve profitability in the future.
Peer comparison
Dec 31, 2024