Southwest Airlines Company (LUV)
Operating profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 2,957,000 | 3,112,000 | 3,091,000 | 3,095,000 |
| Revenue (ttm) | US$ in thousands | 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 | 22,426,000 | 22,401,000 | 22,337,000 | 22,170,000 |
| Operating profit margin | 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% | 13.19% | 13.89% | 13.84% | 13.96% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $224,000K ÷ $25,856,000K
= 0.87%
The operating profit margin of Southwest Airlines Co has shown fluctuations over the past eight quarters. In Q4 2023, the operating profit margin stands at 0.86%, showing a decrease from Q3 2023 which had a margin of 0.96%. Q2 2023 saw a noticeable increase to 2.07%, but this was preceded by a significant drop in Q1 2023 to 3.56%.
Comparing the most recent data with the same quarter from the previous year, there has been a decline in performance as Q4 2022 had a higher operating profit margin of 4.27%. Notably, in Q3 2022, the margin was 7.06%, indicating a significant drop year-over-year.
It is important to highlight that although the operating profit margins have fluctuated, the company has managed to remain in positive territory throughout the analyzed period. Q1 2022 saw the lowest point with a negative operating profit margin of -0.76%, which was followed by improvements in subsequent quarters.
Overall, the recent trend in operating profit margins for Southwest Airlines Co suggests a need for further analysis to understand the underlying factors driving these fluctuations and to determine strategies for potential operational improvements.
Peer comparison
Dec 31, 2023