Southwest Airlines Co. (LUV) Operating Margin: 3.40%
Is Southwest Airlines Co.’s operating margin high or low?
Southwest Airlines Co.'s operating margin of 3.40% is 187% above its 5-year average of -3.91%, near the high end of its 5-year range (-42.18%–10.90%).
As of Thursday, June 25, 2026. 151.85% above its 12-month average of 1.35%.
LUV Operating Margin Chart
Reported annual fiscal-period values; no daily interpolation.
LUV Average Operating Margin Chart
LUV Current vs Average Operating Margin Chart
LUV Operating Margin Metrics
OPERATING MARGIN
3.40%
OPERATING MARGIN AVG TTM
1.35%
OPERATING MARGIN AVG 3Y
1.96%
OPERATING MARGIN AVG 5Y
-3.91%
OPERATING MARGIN AVG 10Y
5.31%
OPERATING MARGIN AVG 15Y
9.07%
OPERATING MARGIN AVG 20Y
8.52%
CURRENT VS TTM AVG
+151.85%
CURRENT VS 3Y AVG
+73.69%
CURRENT VS 5Y AVG
+186.99%
CURRENT VS 10Y AVG
-35.99%
CURRENT VS 15Y AVG
-62.51%
CURRENT VS 20Y AVG
-60.11%
LUV Competitors' Operating Margin
| NAME | MARKET CAP | OPERATING MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Southwest Airlines Co. (LUV) | $24.90B | 3.40% | 1.35% | 1.96% | -3.91% |
| J.B. Hunt Transport Services, Inc. (JBHT)vs › | $25.37B | 7.36% | 7.04% | 7.71% | 7.80% |
| Venture Global, Inc. (VG)vs › | $25.65B | 34.05% | 36.01% | 47.14% | 37.71% |
| Everpure, Inc. (P)vs › | $24.06B | 4.21% | 2.91% | 2.68% | 1.25% |
| Xylem Inc. (XYL)vs › | $26.63B | 13.60% | 12.66% | 11.36% | 10.70% |
| XPO Logistics, Inc. (XPO)vs › | $23.11B | 9.05% | 8.56% | 6.91% | 5.59% |
| ATI Inc. (ATI)vs › | $26.97B | 14.47% | 13.90% | 11.80% | 1.29% |
| Sterling Infrastructure, Inc. (STRL)vs › | $27.38B | 17.25% | 14.68% | 12.22% | 10.67% |
| Hubbell Inc (HUBB)vs › | $27.38B | 20.77% | 20.11% | 18.47% | 16.67% |
| Copart, Inc. (CPRT)vs › | $27.40B | 36.57% | 36.80% | 37.83% | 38.42% |
Operating Efficiency
Gross Margin
16.5%
Operating Margin
3.4%
Southwest Airlines Co. Operating Margin Formula & Definition
Operating Margin = Operating Income / Revenue
Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Southwest Airlines Co. Operating Margin FAQ
- What is the operating margin for Southwest Airlines Co. (LUV)?
- The operating margin for LUV stock is 3.40%.
- Is Southwest Airlines Co.'s operating margin high or low?
- Southwest Airlines Co.'s operating margin of 3.40% is 187% above its 5-year average of -3.91%, near the high end of its 5-year range (-42.18%–10.90%).
- What is the TTM average operating margin for Southwest Airlines Co. (LUV)?
- The TTM average operating margin for LUV stock is 1.35%.
- What is the 3Y average operating margin for Southwest Airlines Co. (LUV)?
- The 3Y average operating margin for LUV stock is 1.96%.
- What is the 5Y average operating margin for Southwest Airlines Co. (LUV)?
- The 5Y average operating margin for LUV stock is -3.91%.
- What is the 10Y average operating margin for Southwest Airlines Co. (LUV)?
- The 10Y average operating margin for LUV stock is 5.31%.
- What is the 15Y average operating margin for Southwest Airlines Co. (LUV)?
- The 15Y average operating margin for LUV stock is 9.07%.
- What is the 20Y average operating margin for Southwest Airlines Co. (LUV)?
- The 20Y average operating margin for LUV stock is 8.52%.
Southwest Airlines Co. Operating Margin History
| DATE | OPERATING MARGIN |
|---|---|
| 2025-12-31 | 1.53% |
| 2024-12-31 | 1.17% |
| 2023-12-31 | 0.86% |
| 2022-12-31 | 4.27% |
| 2021-12-31 | 10.90% |
| 2020-12-31 | -42.18% |
| 2019-12-31 | 13.18% |
| 2018-12-31 | 14.60% |
| 2017-12-31 | 16.09% |
| 2016-12-31 | 17.24% |
| 2015-12-31 | 20.77% |
| 2014-12-31 | 11.96% |
| 2013-12-31 | 7.22% |
| 2012-12-31 | 3.65% |
| 2011-12-31 | 4.43% |
| 2010-12-31 | 8.16% |
| 2009-12-31 | 2.53% |
| 2008-12-31 | 4.07% |
| 2007-12-31 | 8.02% |
| 2006-12-31 | 10.28% |
| 2005-12-31 | 9.56% |
| 2004-12-31 | 8.48% |
| 2003-12-31 | 6.38% |
| 2002-12-31 | 6.18% |
| 2001-12-31 | 11.36% |
| 2000-12-31 | 18.09% |
| 1999-12-31 | 16.51% |
| 1998-12-31 | 16.42% |
| 1997-12-31 | 13.73% |
| 1996-12-31 | 10.30% |
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