Southwest Airlines Co
NYSE:LUV

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Southwest Airlines Co
NYSE:LUV
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Price: 31.97 USD 0.57% Market Closed
Market Cap: 19.2B USD
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Gross Margin
Southwest Airlines Co

70.1%
Current
69%
Average
33.7%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
70.1%
=
Gross Profit
19.2B
/
Revenue
27.4B

Gross Margin Across Competitors

Country US
Market Cap 19.2B USD
Gross Margin
70%
Country US
Market Cap 40.9B USD
Gross Margin
50%
Country US
Market Cap 31.3B USD
Gross Margin
62%
Country CH
Market Cap 19.5B CHF
Gross Margin N/A
Country IE
Market Cap 15.4B EUR
Gross Margin
40%
Country IN
Market Cap 1.6T INR
Gross Margin
40%
Country CN
Market Cap 116.3B CNY
Gross Margin
5%
Country UK
Market Cap 12.1B GBP
Gross Margin
65%
Country SG
Market Cap 18.9B SGD
Gross Margin
51%
Country CN
Market Cap 88.7B CNY
Gross Margin
7%
Country TR
Market Cap 384.4B TRY
Gross Margin
21%
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Southwest Airlines Co
Glance View

Market Cap
19.2B USD
Industry
Airlines

Southwest Airlines Co., founded in 1967, has transformed air travel with its unique business model and commitment to low fares and exceptional customer service. As the nation’s largest domestic airline by passenger numbers, Southwest has built a reputation for reliability and efficiency, operating a point-to-point route network that enables it to serve numerous destinations without the complexities of traditional hub-and-spoke systems. The airline's use of a single aircraft type, the Boeing 737, streamlines operations, reduces maintenance costs, and allows for quicker turnarounds, contributing to its ability to offer lower fares. From its legendary free checked baggage policy to a no-frills approach that prioritizes customer satisfaction, Southwest has cultivated a loyal customer base, evident in their ongoing profitability and robust performance in a competitive aviation landscape. For investors, Southwest Airlines presents a compelling opportunity characterized by its resilient financial performance and consistent operational efficiency. The airline focuses on maintaining a strong balance sheet, with a history of avoiding excessive debt, an essential factor in the often-volatile airline industry. Despite the challenges posed by external factors such as fuel price volatility and economic downturns, Southwest's strong brand loyalty and strategic growth initiatives position it favorably for sustained long-term growth. Investors should appreciate the company’s steadfast commitment to its core values and its ability to adapt to market changes without compromising its fundamental principles, making it a solid contender in the aviation sector.

LUV Intrinsic Value
32.88 USD
Undervaluation 3%
Intrinsic Value
Price

See Also

Discover More
What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
70.1%
=
Gross Profit
19.2B
/
Revenue
27.4B
What is the Gross Margin of Southwest Airlines Co?

Based on Southwest Airlines Co's most recent financial statements, the company has Gross Margin of 70.1%.