IAG vs Southwest Airlines (IAG vs LUV)
IAG (IAG) vs Southwest Airlines (LUV) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
IAG (IAG) and Southwest Airlines (LUV) compete in travel, leisure and gaming. Here are IAG and Southwest Airlines side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy IAG or Southwest Airlines.
IAG vs Southwest Airlines: the figures
| Figure | IAG | Southwest Airlines |
|---|---|---|
| Share price | €5.22 (November 4, 2026) | $46.42 (November 4, 2026) |
| Market cap | €22.7 billion | $22.7 billion |
| P/E (TTM) | 7.9x | 22.6x |
| Forward P/E | 6.9x | 11.1x |
| Revenue growth (quarter) | +0.2% | +21.2% |
| Net margin (TTM) | 9.2% | 3.3% |
| Net debt / EBITDA | 0.7x | 1.2x |
| Dividend yield | 1.96% | 1.66% |
| Beta | 1.30 | 1.22 |
IAG and Southwest Airlines figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that IAG or Southwest Airlines figure is not available, and we never estimate it.
3 key differences between IAG and Southwest Airlines
- Valuation: Southwest Airlines trades at 22.6x its annual earnings and IAG at 7.9x; the market pays more for each dollar of Southwest Airlines profit, usually because it expects more growth.
- Growth: Southwest Airlines grew sales +21.2% year on year in its latest quarter, against +0.2% for IAG.
- Profitability: for every 100 of sales, IAG keeps 9.2 as net profit and Southwest Airlines keeps 3.3.
IAG or Southwest Airlines: which fits your profile
- If you want growth: Southwest Airlines is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): IAG pays the higher dividend relative to its price.
- If you prefer caution: IAG has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: IAG trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither IAG nor Southwest Airlines wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How IAG and Southwest Airlines make money
IAG (IAG)
International Airlines Group owns British Airways, its largest carrier, plus Iberia, Vueling, Aer Lingus and LEVEL. Ticket sales bring in most revenue, with North Atlantic routes as a key market. It also earns from IAG Loyalty, which sells Avios points to banks and partners, and from IAG Cargo, which carries freight on its planes. Full IAG analysis.
Southwest Airlines (LUV)
Southwest Airlines is a low-cost carrier focused on U.S. domestic routes, flying an all-Boeing fleet. Passenger fares bring in most revenue, along with sales of Rapid Rewards points to Chase for co-branded cards. The airline has recently started charging for checked bags and moved to assigned seating. Full Southwest Airlines analysis.
Frequently asked questions: IAG vs Southwest Airlines
Is IAG or Southwest Airlines the better stock?
Choosing between IAG and Southwest Airlines depends on what you are looking for. Southwest Airlines is growing faster right now, and IAG trades on the lower P/E. Fintols does not tell you whether to buy IAG or Southwest Airlines: it shows you the differences so you can decide.
Which pays a higher dividend, IAG or Southwest Airlines?
As of November 4, 2026, IAG yields 1.96% and Southwest Airlines yields 1.66%. Also check how much of their profit IAG and Southwest Airlines pay out: if it is more than they earn, it cannot last.
Which is more expensive, IAG or Southwest Airlines?
On P/E, Southwest Airlines (22.6x) is more expensive than IAG (7.9x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both IAG and Southwest Airlines?
Yes. Many people spread their money across several companies, such as IAG and Southwest Airlines, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying IAG or Southwest Airlines.
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More companies like IAG and Southwest Airlines: travel, leisure and gaming stocks. Educational content about IAG and Southwest Airlines, not investment advice.