Southwest Airlines Company (LUV)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -32,000 | -361,000 | -282,000 | 115,000 | 224,000 | 243,000 | 521,000 | 884,000 | 1,017,000 | 1,597,000 | 1,935,000 | 1,371,000 | 1,721,000 | 357,000 | -1,787,000 | -3,508,000 | -3,817,000 | -1,983,000 | 247,000 | 2,342,000 |
| 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 |
| Operating profit margin | -0.12% | -1.33% | -1.05% | 0.43% | 0.87% | 0.96% | 2.10% | 3.62% | 4.35% | 7.18% | 9.33% | 7.60% | 11.19% | 2.87% | -18.51% | -51.87% | -42.19% | -15.54% | 1.49% | 10.89% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-32,000K ÷ $27,401,000K
= -0.12%
The operating profit margin of Southwest Airlines Company has shown fluctuating trends over the analyzed periods. Starting with a positive margin of 10.89% in March 2020, the margin declined significantly to -42.19% by December 2020. This downward trend continued into the first half of 2021, reaching a low of -51.87% by March 2021.
However, the company managed to improve its operating profit margin gradually, with positive margins returning by September 2021 at 2.87%, and further increasing to 11.19% by December 2021. The margin stabilized around the 7-9% range throughout 2022 and early 2023.
Subsequently, the operating profit margin started to decline again, reaching 0.12% by December 2024, after fluctuating around 0-2% in the preceding quarters. This indicates a certain level of instability in Southwest Airlines Company's operating performance, highlighting the challenges faced in maintaining consistent profitability over the analyzed period.
Peer comparison
Dec 31, 2024