Southwest Airlines Company (LUV)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 99,000 | -49,000 | 77,000 | 393,000 | 465,000 | 497,000 | 581,000 | 658,000 | 539,000 | 827,000 | 996,000 | 584,000 | 978,000 | 2,000 | -1,601,000 | -2,864,000 | -3,074,000 | -1,652,000 | 164,000 | 1,820,000 |
| 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 |
| Net profit margin | 0.36% | -0.18% | 0.29% | 1.48% | 1.80% | 1.97% | 2.34% | 2.69% | 2.30% | 3.72% | 4.80% | 3.24% | 6.36% | 0.02% | -16.58% | -42.35% | -33.97% | -12.94% | 0.99% | 8.46% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $99,000K ÷ $27,401,000K
= 0.36%
The net profit margin of Southwest Airlines Company has fluctuated over the past few years, indicating varying levels of profitability relative to its revenue. Starting at a healthy 8.46% in March 2020, the net profit margin took a sharp decline in the subsequent quarters, falling to negative figures by December 2020. This negative trend continued into 2021, with the March 2021 net profit margin recording a significant decrease to -42.35%.
However, there was a notable improvement in the company's profit margin in the following quarters of 2021 and early 2022, with the margin turning positive by September 2021. Southwest Airlines continued to show signs of recovery with a net profit margin of 4.80% in June 2022, indicating a more sustainable level of profitability.
Despite some fluctuations, Southwest Airlines managed to maintain a reasonable net profit margin ranging between 1.48% to 4.80% in the later quarters of 2022 and throughout 2023. The margin remained relatively stable around the 2-3% range in the latter half of 2023 and into 2024, suggesting a consistent albeit moderate level of profitability for the company.
The net profit margin serves as a key indicator of Southwest Airlines' efficiency in converting revenue into profit, reflecting the company's ability to control costs and generate earnings from its operations. The fluctuating nature of the margin demonstrates the impact of various internal and external factors on the company's bottom line, highlighting the importance of monitoring and managing profitability metrics in the airline industry.
Peer comparison
Dec 31, 2024