Southwest Airlines Company (LUV)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 598,000 | 633,000 | 728,000 | 1,325,000 | -4,256,000 |
| Revenue | US$ in thousands | 27,482,000 | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 |
| Pretax margin | 2.18% | 2.45% | 3.12% | 8.61% | -47.04% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $598,000K ÷ $27,482,000K
= 2.18%
The pretax margin of Southwest Airlines Company has shown varying trends over the past five years. From December 31, 2020, where it was negative at -47.04%, the pretax margin has steadily improved to 8.61% by December 31, 2021. However, in the subsequent years, the pretax margin has shown a slight decline, reaching 3.12% by December 31, 2022, 2.45% by December 31, 2023, and further decreasing to 2.18% by December 31, 2024. While the pretax margin has fluctuated, it is important for Southwest Airlines to closely monitor and manage its expenses and revenue generation to maintain profitability in the future.
Peer comparison
Dec 31, 2024