Southwest Airlines Co
NYSE:LUV

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Southwest Airlines Co
NYSE:LUV
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Price: 34.35 USD 1.45% Market Closed
Market Cap: 20.6B 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 20.6B USD
Gross Margin
70%
Country US
Market Cap 40.4B USD
Gross Margin
50%
Country US
Market Cap 33.3B 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 1.8T INR
Gross Margin
40%
Country UK
Market Cap 14.8B GBP
Gross Margin
65%
Country CN
Market Cap 134.4B CNY
Gross Margin
4%
Country CN
Market Cap 120B CNY
Gross Margin
7%
Country SG
Market Cap 19B SGD
Gross Margin
48%
Country US
Market Cap 11.4B USD
Gross Margin
62%
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Southwest Airlines Co
Glance View

Market Cap
20.6B USD
Industry
Airlines
Economic Moat
None

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
37.24 USD
Undervaluation 8%
Intrinsic Value
Price

See Also

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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%.