How Does Southwest Airlines Stock Compare With Peers?
Southwest Airlines (LUV) stock has significantly outperformed its peers over the past year, with shares up more than 50% in the last 12 months, far outpacing the U.S. Global JETS ETF. However, a closer look (as of January 29, 2026) reveals weak profitability, characterized by negative free cash flow and low operating margins, especially when compared to stronger peers like Delta Air Lines (DAL) and United Airlines (UAL). Despite its revenue growth significantly lagging behind competitors, LUV currently trades at an exceptionally high PE ratio, suggesting limited upside without substantial improvements in its underlying financial performance, even with recent positive guidance and a stock surge on January 29, 2026, due to strong profit forecasts.
- LUV’s 1.1% operating margin, well below DAL’s 9.7%, suggests cost pressures or less pricing power in a competitive market.
- LUV’s 0.6% revenue growth lags most peers, signaling weaker demand or less effective market capture, though better than JBLU.
- LUV’s 56.6% stock gain, outpacing peers, reflects optimism; yet its 66.9 PE implies high future earnings growth expectations.
Here’s how Southwest Airlines stacks up across size, valuation, and profitability versus key peers.
| LUV | DAL | AAL | UAL | JBLU | ALK | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 25.4 | 43.2 | 8.9 | 33.6 | 1.8 | 6.1 |
| Revenue ($ Bil) | 27.6 | 62.9 | 54.3 | 58.4 | 9.1 | 14.1 |
| PE Ratio | 66.9 | 9.3 | 14.8 | 10.2 | -3.9 | 41.0 |
| LTM Revenue Growth | 0.6% | 4.3% | 1.3% | 4.2% | -2.5% | 31.5% |
| LTM Operating Margin | 1.1% | 9.7% | 4.2% | 8.8% | -2.4% | 4.3% |
| LTM FCF Margin | -0.9% | 4.9% | 1.6% | 6.4% | -14.9% | -0.4% |
| 12M Market Return | 56.6% | -1.6% | -22.0% | -4.0% | -17.2% | -26.2% |
For more details on Southwest Airlines, read Buy or Sell LUV Stock. Below we compare LUV’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LUV | 0.6% | 5.3% | 9.6% | 50.8% |
| DAL | 4.3% | 6.2% | 14.8% | 69.2% |
| AAL | 1.3% | 2.7% | 7.8% | 63.9% |
| UAL | 4.2% | 6.2% | 19.5% | 82.5% |
| JBLU | -2.5% | -3.5% | 5.0% | 51.7% |
| ALK | 31.5% | 12.6% | 8.1% | 56.2% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LUV | 1.1% | 1.2% | 0.9% | 4.3% |
| DAL | 9.7% | 9.7% | 9.5% | 7.2% |
| AAL | 4.2% | 5.9% | 7.6% | 3.7% |
| UAL | 8.8% | 9.1% | 9.6% | 5.5% |
| JBLU | -2.4% | -1.0% | -0.3% | -2.0% |
| ALK | 4.3% | 7.8% | 8.0% | 6.7% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| LUV | 66.9 | 53.2 | 43.0 | 31.8 |
| DAL | 9.3 | 12.9 | 8.4 | 19.5 |
| AAL | 14.8 | 11.9 | 13.9 | 70.4 |
| UAL | 10.2 | 11.7 | 12.2 | 18.3 |
| JBLU | -3.9 | -2.0 | -8.4 | -5.0 |
| ALK | 41.0 | 16.1 | 35.1 | 85.3 |
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