Air Transportation, Scheduled · SIC 4512

SOUTHWEST AIRLINES CO

LUV

Watch

Latest revenue

$7.25B

as of 2026-03-31

Latest net income

$227.0M

as of 2026-03-31

Net margin

3.1%

as of 2026-03-31

Price · 5Y

-6.4% / yr 20.2 pts / yr vs S&P 500 28.2% total
Compare:

Live market

delayed ≤15 min
$40.86
0.20%
Market cap
$19.97B
Enterprise value
$22.03B
P/E (trailing)
45.3×
Forward P/E
P/B
2.90×
Dividend yield
1.8%
52-wk high
$55.11
52-wk low
$28.98
Beta
Shares out
488.8M

5-year trend

What this company does

AI

Southwest Airlines runs a major U.S. passenger airline, flying scheduled domestic and near-international routes with a single-segment, point-to-point network. Passenger ticket sales drive the business, generating $6.6 billion of the $7.2 billion in first-quarter 2026 revenue, with ancillary fees and freight rounding out the rest. The carrier swung to a $227 million profit from a year-earlier loss while aggressively shrinking its share count, repurchasing $1.25 billion of stock in the quarter and cutting cash reserves to $3.3 billion from $7.5 billion a year ago.

Generated from LUV's filing dated 2026-02-05

Key risks

AI
  • Aggressive buybacks eroding equity: $1.27B repurchased in Q1 2026 (28M shares), driving stockholders' equity down from $10.35B to $6.88B YoY.
  • Cash position halved to $3.33B from $8.13B a year earlier, while current liabilities ($12.48B) now exceed current assets ($5.97B) by $6.5B.
  • Thin margin recovery: Q1 operating income just $330M on $7.25B revenue (4.6% margin); fuel costs rose 8.6% YoY to $1.36B despite cost discipline.

Generated from LUV's filing dated 2026-02-05

Profitability

Operating margin

1.5%

30.6%

Net margin

1.6%

7.1%

Return on equity

5.5%

23.0%

Return on assets

1.5%

10.1%

Leverage

Debt / equity

2.64×

16.8%

Long-term debt / equity

0.57×

17.1%

Debt / assets

72.5%

4.6%

Earnings tracker

QuarterRevenueYoYNet incomeYoYNet margin

Q1 2026

2026-03-31

$7.25B+12.8%$227.0M+252.3%3.1%

Q4 2025

2025-12-31

$7.44B+7.4%$472.0M-4.1%6.3%

Q3 2025

2025-09-30

$6.95B+1.1%$54.0M-19.4%0.8%

Q2 2025

2025-06-30

$7.24B-1.5%$64.0M-53.3%0.9%

Q1 2025

2025-03-31

$6.43B+1.6%$-149.0M+35.5%-2.3%

Q4 2024

2024-12-31

$6.93B$492.0M7.1%

Q3 2024

2024-09-30

$6.87B+5.3%$67.0M-65.3%1.0%

Q2 2024

2024-06-30

$7.35B+4.5%$137.0M-73.9%1.9%

Year-over-year change vs the same fiscal quarter one year prior. Revenue + net income sourced from SEC 10-Q / 10-K filings — no analyst-consensus dependency.

Industry trend

Air Transportation, Scheduled · SIC 4512

Your notes

Keep private notes on LUV — thesis, target price, catalysts to watch.

Visible only to you. Never shared. Never used to train AI.

Sign in to write a note

Insider activity

Insider buying

$145.5K

Insider selling

$306.5K

Net activity

−$161.1K

Distinct insiders

4

Open-market trades over the last 365 days.

Recent transactions

DateInsiderTypeSharesPriceValue
2026-04-07

Lisa M Atherton

Director

Sale118$37.95$4.5K
2025-12-05

Justin Jones

EVP Operations

Sale8,085$37.36$302.1K
2025-08-06

Gregg A Saretsky

Director

Purchase600$30.02$18.0K
2025-08-06

Gregg A Saretsky

Director

Purchase2,745$30.03$82.4K
2025-08-05

Sarah Feinberg

Director

Purchase1,300$30.00$39.0K
2025-08-05

Sarah Feinberg

Director

Purchase200$30.01$6.0K

Source: SEC Form 4 filings. Officers, directors, and 10%+ owners must disclose share transactions within two business days. RSU grants and tax-withholding rows are excluded by default — compensation activity is not a trading signal.

Who owns LUV

Institutional value

$9.13B

Total shares held

245.8M

Distinct holders

615

As of

2026-03-31

Filers with $100M+ AUM disclose holdings 45 days after quarter end.

Top institutional holders

#ManagerSharesValueQoQ changeAction
1PRIMECAP MANAGEMENT CO/CA/47.1M$1.77BNew
2FRANKLIN RESOURCES INC44.4M$1.67BNew
3VANGUARD CAPITAL MANAGEMENT LLC31.6M$1.19BNew
4BlackRock, Inc.28.6M$1.07BNew
5VANGUARD PORTFOLIO MANAGEMENT LLC23.1M$869.0MNew
6Invesco Ltd.6.5M$244.9MNew
7DIMENSIONAL FUND ADVISORS LP5.8M$216.5MNew
8JPMORGAN CHASE & CO4.4M$159.7MNew
9Bank of New York Mellon Corp3.9M$147.4MNew
10FEDERATED HERMES, INC.2.8M$105.0MNew
11JANE STREET GROUP, LLC2.8M$104.6MNew
12VANGUARD FIDUCIARY TRUST CO2.8M$104.0MNew
13UBS Group AG2.5M$95.6MNew
14SOUND SHORE MANAGEMENT INC /CT/2.0M$75.2MNew
15U S GLOBAL INVESTORS INC1.7M$62.7MNew
16RHUMBLINE ADVISERS1.3M$47.9MNew
17Nuveen, LLC1.2M$45.1MNew
18Vanguard Global Advisers, LLC1.1M$40.6MNew
19DEUTSCHE BANK AG\1.0M$39.1MNew
20NORDEA INVESTMENT MANAGEMENT AB1.1M$39.1MNew

Source: SEC Form 13F-HR. Positions aggregated across sub-managers within each firm. Options (puts/calls) excluded — common stock only.

Top questions investors are asking

AI
  1. 1

    You repurchased $1.25B of stock this quarter while equity dropped from $10.4B to $6.9B YoY—how do you justify that pace given only $3.3B cash and a new $500M debt raise?

  2. 2

    Passenger revenue grew 13% YoY but CASM-ex still rose materially with salaries up $195M—when does unit cost growth actually inflect, and what's the bag-fee/assigned-seating contribution embedded in Q1?

  3. 3

    Interest income collapsed from $84M to $23M as cash fell from $8.1B to $3.3B—what's the minimum liquidity floor before you halt buybacks, and have you stress-tested a fuel or demand shock?

Refreshed when LUV files a new report · last from 2026-02-05