Southwest Airlines (LUV): analysis in plain words
Is Southwest Airlines cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Southwest Airlines (LUV) is listed on the NYSE and we classify it in travel, leisure and gaming. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Southwest Airlines according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Southwest Airlines (LUV) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $46.42 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 22.6x | Price over earnings per share |
| Revenue growth | +21.2% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 3.3% | Profit for every 100 of sales |
| Net debt / EBITDA | 1.2x | Years of operating profit to repay debt |
| Dividend yield | 1.66% | Annual dividend over price |
| Market cap | $22.7 billion | What the stock market values it at |
The Southwest Airlines figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any LUV figure that is not available shows as N/A: we do not estimate it.
How Southwest Airlines makes money
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.
Over the last 12 months, Southwest Airlines brought in revenue of $31.5 billion. For every 100 it sells, Southwest Airlines keeps 22.1 after the direct cost of what it sells (gross margin) and 4.5 after all operating costs (operating margin).
Southwest Airlines against its sector
To know whether a Southwest Airlines figure is high or low you have to put it next to similar companies. This table compares Southwest Airlines with the median of the 13 travel, leisure and gaming companies Fintols covers, with data as of November 4, 2026.
| Figure | Southwest Airlines | travel, leisure and gaming median |
|---|---|---|
| P/E | 22.6x | 17.8x (13) |
| Revenue growth | +21.2% | +8.8% (14) |
| Net margin | 3.3% | 11.6% (14) |
| Dividend yield | 1.66% | 1.31% (14) |
| Net debt / EBITDA | 1.2x | 2.8x (14) |
In short, against the typical travel, leisure and gaming company, Southwest Airlines trades on a higher P/E, grows faster and earns a thinner margin. By size, Southwest Airlines ranks number 10 of 11 travel, leisure and gaming companies quoted in USD on Fintols.
The bull case for Southwest Airlines
These are the strengths in the Southwest Airlines figures as of November 4, 2026:
- Southwest Airlines is selling more than a year ago: +21.2% in its latest quarter (the typical travel, leisure and gaming company grew +8.8%).
- Analysts expect Southwest Airlines earnings to rise: its P/E on the next 12 months of estimated earnings is 11.1x, below the current 22.6x.
The main risk for Southwest Airlines
Southwest Airlines is burning cash: its free cash flow over the last 12 months is negative (-$613 million).
On top of that: southwest Airlines runs on a thin net margin (3.3%, against a travel, leisure and gaming median of 11.6%): a rise in costs can easily wipe out profit.
And, like the rest of travel, leisure and gaming, Southwest Airlines is exposed to people travelling and spending less on leisure if the economy worsens, plus fuel prices.
Frequently asked questions about Southwest Airlines
Is it a good time to buy Southwest Airlines stock?
Fintols does not tell you whether to buy or sell Southwest Airlines, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Southwest Airlines stock trades at $46.42, 16% below its 52-week high ($55.11) and 56% above its low ($29.80). Its P/E is 22.6x against a travel, leisure and gaming median of 17.8x, and 11.1x on the earnings analysts expect over the next 12 months. With Southwest Airlines, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Southwest Airlines pay a dividend?
Yes. As of November 4, 2026, Southwest Airlines pays $0.72 per share a year, which at today's price is a yield of 1.66%. It uses 35% of its profit to pay it, which leaves room to keep paying it if profit dips.
Is Southwest Airlines stock expensive?
It depends on what you compare it with. On P/E, Southwest Airlines trades at 22.6x its last 12 months of earnings: more expensive than the travel, leisure and gaming median (17.8x). A high P/E alone does not make Southwest Airlines expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Southwest Airlines's competitors?
On Fintols we compare Southwest Airlines with DraftKings, Las Vegas Sands and IAG, which are also in travel, leisure and gaming. As of November 4, 2026, DraftKings is worth $11.5 billion; Las Vegas Sands is worth $26.4 billion and trades on a P/E of 16.7; IAG is worth €22.7 billion and trades on a P/E of 7.9. Each has a side-by-side comparison with Southwest Airlines below.
Southwest Airlines competitors
- DraftKings (DKNG) analysis · Southwest Airlines vs DraftKings comparison
- Las Vegas Sands (LVS) analysis · Southwest Airlines vs Las Vegas Sands comparison
- IAG (IAG) analysis · Southwest Airlines vs IAG comparison
To understand Southwest Airlines better
- How to Read a Balance Sheet: A Beginner's Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Southwest Airlines: travel, leisure and gaming stocks and S&P 500 companies. Open the full LUV analysis with its valuation and scenarios. Educational content about Southwest Airlines, not investment advice.