Southwest Airlines Co
NYSE:LUV

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Southwest Airlines Co
NYSE:LUV
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Price: 25.13 USD 1.54%
Market Cap: 14.9B USD

Southwest Airlines Co
Free Cash Flow

Last Value
3-Years 3-Y CAGR
5-Years 5-Y CAGR
10-Years 10-Y CAGR
Quarterly
Annual
TTM
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Southwest Airlines Co
Free Cash Flow Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Company Free Cash Flow CAGR 3Y CAGR 5Y CAGR 10Y
Southwest Airlines Co
NYSE:LUV
Free Cash Flow
-$1.6B
CAGR 3-Years
N/A
CAGR 5-Years
N/A
CAGR 10-Years
N/A
Delta Air Lines Inc
NYSE:DAL
Free Cash Flow
$2.9B
CAGR 3-Years
454%
CAGR 5-Years
-4%
CAGR 10-Years
1%
Alaska Air Group Inc
NYSE:ALK
Free Cash Flow
$183m
CAGR 3-Years
-37%
CAGR 5-Years
-29%
CAGR 10-Years
-6%
Joby Aviation Inc
NYSE:JOBY
Free Cash Flow
-$476.9m
CAGR 3-Years
-28%
CAGR 5-Years
-41%
CAGR 10-Years
N/A
United Airlines Holdings Inc
NASDAQ:UAL
Free Cash Flow
$3.8B
CAGR 3-Years
N/A
CAGR 5-Years
10%
CAGR 10-Years
20%
American Airlines Group Inc
NASDAQ:AAL
Free Cash Flow
-$812m
CAGR 3-Years
N/A
CAGR 5-Years
-12%
CAGR 10-Years
10%

Southwest Airlines Co
Glance View

Economic Moat
None
Market Cap
15.1B USD
Industry
Airlines

Southwest Airlines Co., an emblematic name in the aviation industry, stands out not just for its vibrant aircraft liveries but for pioneering a unique business model that has steered its success over decades. Born from the imagination of Rollin King and Herb Kelleher in 1967, Southwest set out to disrupt traditional air travel norms by embracing a point-to-point route system rather than the conventional hub-and-spoke model. This approach, combined with a focus on short-haul flights, has allowed the airline to streamline operations, reducing turnaround time and boosting aircraft utilization. Unlike many of its competitors, Southwest's operating philosophy is anchored in a no-frills service model, which has enabled it to offer competitive fares without compromising on reliability and customer satisfaction. Financially, Southwest thrives on its low-cost carrier structure, prioritizing operational efficiency and cost control as pillars of profitability. The airline's decision to exclusively operate a fleet of Boeing 737s simplifies maintenance and training, further driving down costs. Revenue streams flow predominantly from passenger fares, bolstered by ancillary revenue channels such as priority boarding and extra-legroom seating. Southwest's savvy financial management — along with a culture of friendliness and customer engagement — has cultivated a loyal customer base that values the balance of affordability and service quality. Such strategic choices not only secure Southwest's place as a favored domestic carrier but also position it resiliently amidst industry fluctuations and economic adversities, buoyed by a business model that deftly marries cost efficiency with customer satisfaction.

LUV Intrinsic Value
41.93 USD
Undervaluation 40%
Intrinsic Value
Price

See Also

What is Southwest Airlines Co's Free Cash Flow?
Free Cash Flow
-1.6B USD

Based on the financial report for Dec 31, 2024, Southwest Airlines Co's Free Cash Flow amounts to -1.6B USD.

What is Southwest Airlines Co's Free Cash Flow growth rate?
Free Cash Flow CAGR 1Y
-316%

Over the last year, the Free Cash Flow growth was -316%.

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