Southwest Airlines Company (LUV)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 224,000 | 1,017,000 | 1,721,000 | -3,816,000 | 2,957,000 |
| Revenue | US$ in thousands | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 | 22,426,000 |
| Operating profit margin | 0.87% | 4.36% | 11.19% | -42.18% | 13.19% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $224,000K ÷ $25,857,000K
= 0.87%
Southwest Airlines Co's operating profit margin has been fluctuating significantly over the past five years. In 2023, the operating profit margin was 0.86%, indicating that the company generated a relatively low profit from its core operations compared to its revenue. This marks a decrease from the previous year's operating profit margin of 4.27%.
In 2022, the operating profit margin was positive at 4.27%, showing a decent level of profitability from operations. However, this was a stark contrast to 2021 when the operating profit margin was -7.85%, indicating that the company incurred operational losses during that year.
The most significant decline in operating profit margin occurred in 2020, where it plummeted to -52.86%, reflecting a substantial loss from operations. This was a considerable decrease from the previous year's robust operating profit margin of 13.18%, which indicated strong profitability in 2019.
Overall, Southwest Airlines Co's operating profit margin has shown inconsistency, with fluctuations ranging from negative to positive margins over the past five years. This highlights the company's challenges in maintaining stable profitability from its core operations.
Peer comparison
Dec 31, 2023