Southwest Airlines Co
LUV—
Build a strategy around LUV
Southwest Airlines Co AI Insights
Informational only. Not investment advice.Snapshot
- Negative FCF of -251M TTM despite 2.0B operating cash flow - capex of 2.3B consuming all cash generation[Free Cash Flow TTM]
- EPS collapsed 50% YoY and 45% over 3Y while revenue grew 1.1% TTM - severe margin compression[EPS Growth 1Y]
- P/E of 63x vs industry median 19x despite operating margin of 1.1% (below 4.3% median) - priced for turnaround[P/E Ratio]
Watch Triggers
- Operating Margin TTM: Rises above 3% for 2 consecutive quarters — Would signal turnaround gaining traction; current 1.1% is crisis-level
- Free Cash Flow TTM: Turns positive — Negative FCF unsustainable; positive inflection validates capex discipline
- Capital Expenditure TTM: Falls below 1.5B annually — Current 2.3B capex is primary FCF drain; normalization critical
Bull Case
Largest US domestic carrier with 27.6B revenue and 0.87x asset turnover (above 0.71x median) - operational efficiency exists, margin fix is execution
Total Revenue TTMAsset Turnover TTM
Net debt only 1.2B with 2.9B cash - balance sheet can absorb turnaround period without dilution
Net DebtCash and Equivalents
Bear Case
Negative working capital of -5.6B and negative FCF means no buffer if revenue declines - structural cash trap
Working CapitalFree Cash Flow TTM
63x P/E assumes perfect execution on turnaround; any miss destroys equity value with 1.1% margins
P/E RatioOperating Margin TTM
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
35%
Leverage LUV's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.
Forward Thesis
Margin recovery to industry median would triple EPS within 18 months
1-3ylow
- Operating margin at 1.1% vs 4.3% industry median - 3x expansion potential
- Revenue base of 27.6B provides operating leverage on cost cuts
- Fleet modernization capex should normalize, releasing FCF
EBITDA margin 8% shows underlying cash potentialDebt/equity 0.68x provides balance sheet flexibilityAsset turnover 0.87x above industry 0.71x median
Valuation Context
Caveats
Public Strategies Rankings
See how Southwest Airlines Co ranks across different investment strategies.
Leverage LUV's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.
LUV Fundamentals
Transportation and Warehousing → Air Transportation
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$21.77B | — | ||
$24.52B | — | ||
48 | — | ||
$28.06B | +2.1% | — | |
$0.79 | -4.6% | — | |
1.53% | +0.4% | — | |
1.57% | -0.1% | — | |
$-831.0M | — | ||
4.81% | +0.4% | — | |
Beta 5Y (Monthly) | unknown | — |
LUV Dividend History
95 dividends
2026
$0.180003/12/26$0.1800
2025
$0.720012/26/25$0.1800
09/03/25$0.1800
06/18/25$0.1800
03/12/25$0.1800
2024
$0.720012/26/24$0.1800
09/04/24$0.1800
06/18/24$0.1800
03/05/24$0.1800
2023
$0.900012/20/23$0.1800
09/05/23$0.1800
06/20/23$0.1800
03/07/23$0.1800
01/09/23$0.1800
2020
$0.180003/03/20$0.1800
2019
$0.700012/10/19$0.1800
08/20/19$0.1800
06/04/19$0.1800
03/05/19$0.1600
2018
$0.605012/04/18$0.1600
08/21/18$0.1600
06/05/18$0.1600
03/06/18$0.1250
2017
$0.450012/06/17$0.1250
08/22/17$0.1250
06/05/17$0.1000
03/07/17$0.1000
2016
$0.375012/06/16$0.1000
08/16/16$0.1000
06/06/16$0.1000
03/01/16$0.0750
2015
$0.285012/08/15$0.0750
08/18/15$0.0750
06/01/15$0.0750
03/03/15$0.0600
2014
$0.220012/09/14$0.0600
08/19/14$0.0600
06/02/14$0.0600
03/04/14$0.0400
2013
$0.130012/10/13$0.0400
08/06/13$0.0400
06/03/13$0.0400
03/05/13$0.0100
2012
$0.034512/04/12$0.0100
08/14/12$0.0100
06/04/12$0.0100
02/28/12$0.0045
2011
$0.018012/06/11$0.0045
08/23/11$0.0045
06/06/11$0.0045
03/01/11$0.0045
2010
$0.018012/07/10$0.0045
08/24/10$0.0045
06/07/10$0.0045
03/02/10$0.0045
2009
$0.018012/08/09$0.0045
09/01/09$0.0045
06/08/09$0.0045
02/24/09$0.0045
2008
$0.018012/09/08$0.0045
08/26/08$0.0045
06/10/08$0.0045
02/26/08$0.0045
2007
$0.018012/04/07$0.0045
08/28/07$0.0045
06/05/07$0.0045
02/27/07$0.0045
2006
$0.018012/05/06$0.0045
08/29/06$0.0045
06/06/06$0.0045
02/28/06$0.0045
2005
$0.018012/06/05$0.0045
08/30/05$0.0045
06/07/05$0.0045
03/01/05$0.0045
2004
$0.018012/07/04$0.0045
08/31/04$0.0045
06/08/04$0.0045
03/02/04$0.0045
2003
$0.018012/03/03$0.0045
08/29/03$0.0045
06/02/03$0.0045
03/04/03$0.0045
2002
$0.018012/09/02$0.0045
08/30/02$0.0045
06/03/02$0.0045
02/27/02$0.0045
2001
$0.018012/03/01$0.0045
08/31/01$0.0045
06/04/01$0.0045
02/28/01$0.0045
2000
$0.014812/04/00$0.0037
09/01/00$0.0037
05/31/00$0.0037
03/01/00$0.0037
LUV Stock Splits
1 stock split
02/16/010.666667:1 split
LUV SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
02/05/26 | 12/31/25 | 10-K | |
10/23/25 | 09/30/25 | 10-Q | |
07/24/25 | 06/30/25 | 10-Q | |
04/25/25 | 03/31/25 | 10-Q | |
02/07/25 | 12/31/24 | Unknown | |
10/28/24 | 09/30/24 | 10-Q | |
07/29/24 | 06/30/24 | 10-Q | |
04/26/24 | 03/31/24 | 10-Q | |
02/06/24 | 12/31/23 | 10-K | |
10/30/23 | 09/30/23 | 10-Q | |
07/28/23 | 06/30/23 | 10-Q | |
04/28/23 | 03/31/23 | 10-Q | |
02/07/23 | 12/31/22 | 10-K | |
10/31/22 | 09/30/22 | 10-Q | |
08/02/22 | 06/30/22 | 10-Q | |
05/02/22 | 03/31/22 | 10-Q | |
02/07/22 | 12/31/21 | 10-K | |
10/26/21 | 09/30/21 | 10-Q | |
07/27/21 | 06/30/21 | 10-Q | |
04/27/21 | 03/31/21 | 10-Q | |
02/08/21 | 12/31/20 | 10-K | |
10/27/20 | 09/30/20 | 10-Q | |
07/27/20 | 06/30/20 | 10-Q | |
04/28/20 | 03/31/20 | 10-Q | |
02/04/20 | 12/31/19 | 10-K | |
11/08/19 | 09/30/19 | 10-Q | |
07/30/19 | 06/30/19 | 10-Q | |
04/30/19 | 03/31/19 | 10-Q | |
02/05/19 | 12/31/18 | 10-K | |
10/30/18 | 09/30/18 | 10-Q | |
08/01/18 | 06/30/18 | 10-Q | |
05/01/18 | 03/31/18 | 10-Q | |
02/07/18 | 12/31/17 | 10-K | |
11/01/17 | 09/30/17 | 10-Q | |
08/01/17 | 06/30/17 | 10-Q | |
05/03/17 | 03/31/17 | 10-Q | |
02/07/17 | 12/31/16 | 10-K | |
10/31/16 | 09/30/16 | 10-Q | |
07/28/16 | 06/30/16 | 10-Q | |
04/29/16 | 03/31/16 | 10-Q | |
02/03/16 | 12/31/15 | 10-K | |
10/29/15 | 09/30/15 | 10-Q | |
07/31/15 | 06/30/15 | 10-Q | |
04/30/15 | 03/31/15 | 10-Q | |
02/06/15 | 12/31/14 | 10-K | |
10/29/14 | 09/30/14 | 10-Q | |
07/30/14 | 06/30/14 | 10-Q | |
05/01/14 | 03/31/14 | 10-Q | |
02/04/14 | 12/31/13 | 10-K | |
10/30/13 | 09/30/13 | 10-Q | |
07/31/13 | 06/30/13 | 10-Q | |
05/02/13 | 03/31/13 | 10-Q | |
02/07/13 | 12/31/12 | 10-K | |
10/26/12 | 09/30/12 | 10-Q | |
07/27/12 | 06/30/12 | 10-Q | |
04/25/12 | 03/31/12 | 10-Q | |
02/09/12 | 12/31/11 | 10-K | |
10/25/11 | 09/30/11 | 10-Q | |
08/05/11 | 06/30/11 | 10-Q | |
04/25/11 | 03/31/11 | 10-Q | |
02/08/11 | 12/31/10 | 10-K | |
10/22/10 | 09/30/10 | 10-Q | |
08/02/10 | 06/30/10 | 10-Q | |
04/26/10 | 03/31/10 | 10-Q | |
01/29/10 | 12/31/09 | 10-K | |
10/23/09 | 09/30/09 | 10-Q | |
07/23/09 | 06/30/09 | 10-Q | |
04/20/09 | 03/31/09 | 10-Q | |
02/02/09 | 12/31/08 | 10-K | |
10/20/08 | 09/30/08 | 10-Q | |
07/28/08 | 06/30/08 | 10-Q | |
04/21/08 | 03/31/08 | 10-Q | |
02/04/08 | 12/31/07 | 10-K | |
10/22/07 | 09/30/07 | 10-Q | |
07/20/07 | 06/30/07 | 10-Q | |
04/23/07 | 03/31/07 | 10-Q | |
02/01/07 | 12/31/06 | 10-K | |
10/20/06 | 09/30/06 | 10-Q | |
07/21/06 | 06/30/06 | 10-Q | |
04/24/06 | 03/31/06 | 10-Q | |
02/01/06 | 12/31/05 | 10-K | |
10/21/05 | 09/30/05 | 10-Q | |
07/20/05 | 06/30/05 | 10-Q | |
04/15/05 | 03/31/05 | 10-Q | |
02/04/05 | 12/31/04 | 10-K | |
10/15/04 | 09/30/04 | 10-Q | |
07/19/04 | 06/30/04 | 10-Q | |
04/16/04 | 03/31/04 | 10-Q | |
01/29/04 | 12/31/03 | 10-K | |
10/21/03 | 09/30/03 | 10-Q | |
07/22/03 | 06/30/03 | 10-Q | |
04/23/03 | 03/31/03 | 10-Q | |
02/05/03 | 12/31/02 | 10-K | |
10/30/02 | 09/30/02 | 10-Q | |
07/26/02 | 06/30/02 | 10-Q | |
04/30/02 | 03/31/02 | 10-Q | |
02/04/02 | 12/31/01 | 10-K | |
11/14/01 | 09/30/01 | 10-Q | |
08/02/01 | 06/30/01 | 10-Q | |
05/01/01 | 03/31/01 | 10-Q | |
01/26/01 | 12/31/00 | 10-K | |
11/02/00 | 09/30/00 | 10-Q | |
08/02/00 | 06/30/00 | 10-Q | |
05/04/00 | 03/31/00 | 10-Q |