Southwest Airlines vs Delta Air Lines: Which Stock Could Rally?
Southwest Airlines fell -10% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Delta Air Lines gives you more. Delta Air Lines (DAL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Southwest Airlines (LUV) stock, suggesting you may be better off investing in DAL
- DAL’s Last 12 Months revenue growth was 2.8%, vs. LUV’s 2.1%.
- In addition, its Last 3-Year Average revenue growth came in at 7.9%, ahead of LUV’s 5.7%.
- DAL leads on profitability over both periods – LTM margin of 9.2% and 3-year average of 9.5%.
These differences become even clearer when you look at the financials side by side. The table highlights how LUV’s fundamentals stack up against those of DAL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LUV | DAL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 60.8 | 6.6 | DAL |
| Revenue Growth | |||
| Last Quarter | 7.4% | 2.9% | LUV |
| Last 12 Months | 2.1% | 2.8% | DAL |
| Last 3 Year Average | 5.7% | 7.9% | DAL |
| Operating Margins | |||
| Last 12 Months | 1.5% | 9.2% | DAL |
| Last 3 Year Average | 1.2% | 9.5% | DAL |
| Momentum | |||
| Last 3 Year Return | 39.0% | 64.0% | DAL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LUV Revenue Comparison | DAL Revenue Comparison
See more margin details: LUV Operating Income Comparison | DAL Operating Income Comparison
- Better Value & Growth: LTM Leads Southwest Airlines Stock
- Southwest Airlines Stock To $28?
- Southwest Airlines Stock To $28?
- LTM Tops Southwest Airlines Stock on Price & Potential
- Would You Still Hold Southwest Airlines Stock If It Fell Another 30%?
- Stronger Bet Than Southwest Airlines Stock: LTM Delivers More
See detailed fundamentals on Buy or Sell DAL Stock and Buy or Sell LUV Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LUV Return | -8% | -21% | -12% | 19% | 26% | 4% | -1% | ||
| DAL Return | -3% | -16% | 23% | 52% | 16% | -12% | 55% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% | <=== | |
| Monthly Win Rates [3] | |||||||||
| LUV Win Rate | 33% | 50% | 33% | 75% | 50% | 67% | 51% | ||
| DAL Win Rate | 50% | 50% | 42% | 58% | 67% | 0% | 44% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | <=== | |
| Max Drawdowns [4] | |||||||||
| LUV Max Drawdown | -16% | -28% | -33% | -17% | -28% | -1% | -20% | ||
| DAL Max Drawdown | -17% | -28% | -6% | -8% | -41% | -15% | -19% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -2% | -8% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/10/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read DAL Dip Buyer Analyses and LUV Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about LUV or DAL? Consider portfolio approach.
Portfolios Over Individual Stock Picks
Single stocks swing wildly but staying invested matters. A well built portfolio helps you stay invested, captures upside and softens the blows from individual stocks.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.