Southwest Airlines Co. (LUV) EBITDA Margin: 7.97%
Is Southwest Airlines Co.’s EBITDA margin high or low?
Southwest Airlines Co.'s EBITDA margin of 7.97% is 87% above its 5-year average of 4.26%, near the high end of its 5-year range (-29.70%–19.18%).
As of Thursday, June 25, 2026. 5.96% below its 12-month average of 8.47%.
LUV EBITDA Margin Chart
Reported annual fiscal-period values; no daily interpolation.
LUV Average EBITDA Margin Chart
LUV Current vs Average EBITDA Margin Chart
LUV EBITDA Margin Metrics
EBITDA MARGIN
7.97%
EBITDA MARGIN AVG TTM
8.47%
EBITDA MARGIN AVG 3Y
9.03%
EBITDA MARGIN AVG 5Y
4.26%
EBITDA MARGIN AVG 10Y
12.07%
EBITDA MARGIN AVG 15Y
14.68%
EBITDA MARGIN AVG 20Y
14.37%
CURRENT VS TTM AVG
-5.96%
CURRENT VS 3Y AVG
-11.69%
CURRENT VS 5Y AVG
+86.94%
CURRENT VS 10Y AVG
-33.94%
CURRENT VS 15Y AVG
-45.70%
CURRENT VS 20Y AVG
-44.55%
LUV Competitors' EBITDA Margin
| NAME | MARKET CAP | EBITDA MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Southwest Airlines Co. (LUV) | $24.90B | 7.97% | 8.47% | 9.03% | 4.26% |
| J.B. Hunt Transport Services, Inc. (JBHT)vs › | $25.37B | 13.17% | 13.20% | 13.32% | 13.23% |
| Venture Global, Inc. (VG)vs › | $25.65B | 41.82% | 51.98% | 59.57% | 59.57% |
| Everpure, Inc. (P)vs › | $24.06B | 10.36% | 9.63% | 8.57% | 6.78% |
| Xylem Inc. (XYL)vs › | $26.63B | 19.76% | 19.77% | 16.97% | 16.08% |
| XPO Logistics, Inc. (XPO)vs › | $23.11B | 14.43% | 14.56% | 12.60% | 11.44% |
| ATI Inc. (ATI)vs › | $26.97B | 17.67% | 16.53% | 15.92% | 14.65% |
| Sterling Infrastructure, Inc. (STRL)vs › | $27.38B | 20.30% | 20.83% | 16.94% | 14.67% |
| Hubbell Inc (HUBB)vs › | $27.38B | 23.00% | 22.97% | 21.25% | 19.65% |
| Copart, Inc. (CPRT)vs › | $28.14B | 45.44% | 45.20% | 44.35% | 44.34% |
Margin Comparison
Gross Margin
16.5%
EBITDA Margin
8.0%
Operating Margin
3.4%
Net Margin
2.8%
Formula: EBITDA Margin = (EBITDA / Revenue) × 100
Why EBITDA Margin matters:
- Removes effects of depreciation policies (D&A)
- Capital structure neutral (ignores interest)
- Tax neutral (ignores tax differences)
- Good proxy for operating cash generation
Southwest Airlines Co. EBITDA Margin Formula & Definition
EBITDA Margin = EBITDA / Revenue
EBITDA margin measures operating profitability before interest, taxes, depreciation, and amortization as a percentage of revenue.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Southwest Airlines Co. EBITDA Margin FAQ
- What is the EBITDA margin for Southwest Airlines Co. (LUV)?
- The EBITDA margin for LUV stock is 7.97%.
- Is Southwest Airlines Co.'s EBITDA margin high or low?
- Southwest Airlines Co.'s EBITDA margin of 7.97% is 87% above its 5-year average of 4.26%, near the high end of its 5-year range (-29.70%–19.18%).
- What is the TTM average EBITDA margin for Southwest Airlines Co. (LUV)?
- The TTM average EBITDA margin for LUV stock is 8.47%.
- What is the 3Y average EBITDA margin for Southwest Airlines Co. (LUV)?
- The 3Y average EBITDA margin for LUV stock is 9.03%.
- What is the 5Y average EBITDA margin for Southwest Airlines Co. (LUV)?
- The 5Y average EBITDA margin for LUV stock is 4.26%.
- What is the 10Y average EBITDA margin for Southwest Airlines Co. (LUV)?
- The 10Y average EBITDA margin for LUV stock is 12.07%.
- What is the 15Y average EBITDA margin for Southwest Airlines Co. (LUV)?
- The 15Y average EBITDA margin for LUV stock is 14.68%.
- What is the 20Y average EBITDA margin for Southwest Airlines Co. (LUV)?
- The 20Y average EBITDA margin for LUV stock is 14.37%.
Southwest Airlines Co. EBITDA Margin History
| DATE | EBITDA MARGIN |
|---|---|
| 2025-12-31 | 7.97% |
| 2024-12-31 | 8.98% |
| 2023-12-31 | 9.16% |
| 2022-12-31 | 9.99% |
| 2021-12-31 | 19.18% |
| 2020-12-31 | -29.70% |
| 2019-12-31 | 18.99% |
| 2018-12-31 | 20.30% |
| 2017-12-31 | 21.48% |
| 2016-12-31 | 23.24% |
| 2015-12-31 | 23.13% |
| 2014-12-31 | 15.38% |
| 2013-12-31 | 12.33% |
| 2012-12-31 | 9.69% |
| 2011-12-31 | 7.79% |
| 2010-12-31 | 12.57% |
| 2009-12-31 | 9.13% |
| 2008-12-31 | 8.91% |
| 2007-12-31 | 17.56% |
| 2006-12-31 | 15.95% |
| 2005-12-31 | 15.74% |
| 2004-12-31 | -50.37% |
| 2003-12-31 | 12.85% |
| 2002-12-31 | -55.56% |
| 2001-12-31 | 17.08% |
| 2000-12-31 | 23.07% |
| 1999-12-31 | -40.81% |
| 1998-12-31 | -41.53% |
| 1997-12-31 | -49.52% |
| 1996-12-31 | -57.29% |
Related Metrics
About Southwest Airlines Co.
Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of Puerto Rico, along with 10 international countries close by. These international destinations include Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. To enhance the passenger journey, Southwest provides in-flight entertainment and internet access on its Wi-Fi-enabled planes. The airline also runs the Rapid Rewards loyalty program, enabling members to accumulate points proportional to the money spent on Southwest's base fares. For customer convenience in travel planning, the company offers a range of digital tools, including its official websites and mobile applications, as well as SWABIZ, a dedicated online booking platform for business clients. Additional services available include EarlyBird Check-In, preferred boarding options, and transportation for pets and unaccompanied minors. The company was founded in 1967 and its corporate headquarters are situated in Dallas, Texas.
- Sector
- Industrials
- Industry
- Airlines, Airports & Air Services
- CEO
- Robert E. Jordan