Southwest Airlines Company (LUV)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	632,000	633,000	749,000	899,000	728,000	1,090,000	1,337,000	803,000	1,325,000	-83,000	-2,225,000	-3,966,000	-4,256,000	-2,258,000	103,000	2,310,000	2,958,000	3,108,000	3,075,000	3,067,000
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
Pretax margin		2.44%	2.51%	3.02%	3.68%	3.11%	4.90%	6.45%	4.45%	8.62%	-0.67%	-23.05%	-58.64%	-47.04%	-17.69%	0.62%	10.74%	13.19%	13.87%	13.77%	13.83%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $632,000K ÷ $25,856,000K
= 2.44%

The pretax margin for Southwest Airlines Co has shown fluctuations over the past eight quarters. In Q4 2023, the pretax margin was 2.43%, slightly lower than the previous quarter's 2.49%. The pretax margin reached its peak at 6.32% in Q3 2022 but has since declined. The trend indicates a general decrease in profitability before tax in recent quarters, with Q1 2023 showing the lowest pretax margin at 3.62%. Overall, Southwest Airlines Co may need to focus on improving operational efficiency and cost management to sustain or enhance its pretax profitability.