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.