Does Southwest Airlines Stock Lead the Pack?
Southwest Airlines (LUV) stock outperformed most peers over the past year, but how does it truly measure up against rivals navigating a dynamic airline sector as of March 9, 2026? A closer look reveals LUV’s strong market return, yet a lower operating margin and negative free cash flow compared to top competitors. With moderate revenue growth, its high P/E ratio suggests a premium valuation, potentially limiting upside without sustained profitability improvements.
- LUV’s 1.5% operating margin trails DAL (9.2%), signaling weaker profitability in a capital-intensive industry susceptible to high costs.
- LUV’s 2.1% revenue growth lags DAL, UAL, ALK, implying slower market share expansion amid uncertain demand, though outpacing AAL, JBLU.
- LUV’s 50.6% gain, outperforming peers, and 59.3 PE reflects high investor optimism for future earnings from its transformation, implying rich valuation.
Here’s how Southwest Airlines stacks up across size, valuation, and profitability versus key peers.
| LUV | DAL | AAL | UAL | JBLU | ALK | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 26.2 | 39.3 | 7.6 | 30.6 | 1.7 | 5.0 |
| Revenue ($ Bil) | 28.1 | 63.4 | 54.6 | 59.1 | 9.1 | 14.2 |
| PE Ratio | 59.3 | 7.8 | 68.1 | 9.1 | -2.8 | 50.0 |
| LTM Revenue Growth | 2.1% | 2.8% | 0.8% | 3.5% | -2.3% | 21.3% |
| LTM Operating Margin | 1.5% | 9.2% | 3.0% | 8.4% | -3.7% | 3.9% |
| LTM FCF Margin | -3.0% | 6.1% | -3.3% | 4.3% | -13.4% | -2.4% |
| 12M Market Return | 50.6% | 15.1% | -12.2% | 14.0% | -26.0% | -28.7% |
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 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| LUV | 2.1% | 2.1% | 5.3% | 9.6% |
| DAL | 2.8% | 2.8% | 6.2% | 14.8% |
| AAL | 0.8% | 0.8% | 2.7% | 7.8% |
| UAL | 3.5% | 3.5% | 6.2% | 19.5% |
| JBLU | -2.3% | -2.3% | -3.5% | 5.0% |
| ALK | 21.3% | 21.3% | 12.6% | 8.1% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| LUV | 1.5% | 1.5% | 1.2% | 0.9% |
| DAL | 9.2% | 9.2% | 9.7% | 9.5% |
| AAL | 3.0% | 3.0% | 5.9% | 7.6% |
| UAL | 8.4% | 8.4% | 9.1% | 9.6% |
| JBLU | -3.7% | -3.7% | -1.0% | -0.3% |
| ALK | 3.9% | 3.9% | 7.8% | 8.0% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
| LUV | 59.3 | 52.8 | 43.2 | 37.0 |
| DAL | 7.8 | 9.0 | 11.2 | 5.6 |
| AAL | 68.1 | 91.1 | 13.5 | 10.9 |
| UAL | 9.1 | 10.8 | 10.1 | 5.2 |
| JBLU | -2.8 | -2.7 | -3.4 | -6.0 |
| ALK | 50.0 | 59.4 | 20.7 | 21.2 |
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