Southwest Airlines Co's Competitiveness
A competitive positioning analysis and financial ratio benchmarking of Southwest Airlines Co (LUV) against its publicly traded competitors: sales growth, net income, profitability, valuation and market share, plus each peer's market capitalization, revenue, income and employees. Free below: the top 5 peers. Subscriber access adds the full competitor list and CSV downloads.
Key Findings: Southwest Airlines Co vs Its Competitors
- TTM: Trailing 12-month revenue of 30,072M vs 162,538M combined for tracked competitors (15.6% combined share).
- Trending: Latest-quarter revenue run-rate is accelerating (+12.2% annualized vs trailing 12 months), vs accelerating (+13.8%) for its tracked peer group.
- Growth: Southwest Airlines Co generated 16.4% revenue growth year over year in Q2 2026, vs 16.6% for its tracked competitors combined.
- Profitability: Its 2.8% net margin compares with 4.7% for the peer group.
- Scale: Southwest Airlines Co ranks #4 of 17 companies by market capitalization in the Airline industry, holding 11.3% of industry market cap.
- Peer revenue share: Southwest Airlines Co accounted for 15.4% of combined revenue among its tracked peer group, down from 15.4% a year earlier.
- Peer differentiation: Revenue per employee of $0.41M compares with $0.50M for the peer group (0.8x).
Every figure above is sourced and cited in detail further down this page (Market Structure, Profitability & Cost Structure, Productivity vs Peers).
LUV Sales vs. its Competitors, Q2 2026
Southwest Airlines Co reported revenue growth of 16.40 % year on year in Q2 2026, below its competitors' combined revenue growth of 16.56 %.
With a net margin of 2.76 %, Southwest Airlines Co reported lower profitability than its competitors (4.72 %).
Southwest Airlines Co generated 15.42 % of the combined sales of its peer group, down from 15.44 % a year earlier.
Southwest Airlines Co vs. its Competitors, Q2 2026
Revenue growth, year on year
Net income growth, year on year
Net margin
Revenue run-rate vs trailing 12 months
TTM net margin
TTM = trailing twelve months. Run-rate annualizes the latest quarter (×4) and compares it to TTM. In millions of $. High-Confidence Competitors are named as a competitor directly in an SEC filing; Similar-Size Competitors are the closest peers by market-cap rank within the same industry; Similar Growth & Profitability Competitors are the closest peers by combined revenue growth, operating margin and ROIC, all independent of the competitor list.
TTM revenue, latest-quarter run-rate and net income/margin benchmarked across Southwest Airlines Co and its 4 competitor groupings. Available under Commercial License.
| Entity | TTM Revenue | Rev Run-rate vs TTM |
|---|---|---|
| Southwest Airlines Co | $12,345M | +12.3% · Accelerating |
| Competitors combined | $12,345M | +12.3% · Accelerating |
| High-Confidence Competitors (3) | $12,345M | +12.3% · Accelerating |
| Similar-Size Competitors (4) | $12,345M | +12.3% · Accelerating |
| Similar Growth & Profitability (5) | $12,345M | +12.3% · Accelerating |
TTM revenue, run-rate and net margin benchmarking across Southwest Airlines Co's competitor groups requires a Commercial License.
For context: the Airline industry grew revenue 10.3% year over year, combined, vs 16.4% for Southwest Airlines Co. Southwest Airlines Co's share of combined industry revenue moved from 5.89% to 6.22%, a gain of 0.33 percentage points.
Southwest Airlines Co's Competitor Quality Breadth
Share of each group, trailing 12 months: profitable (net margin > 0), expanding (revenue growth > 0), growing faster than the industry's own median, and financially distressed (Piotroski F-Score of 2 or below).
| Entity | Profitable | Expanding | Above Industry Growth | Distressed |
|---|---|---|---|---|
| Southwest Airlines Co | Yes | Yes | Yes | No |
| Competitors combined (11) | ||||
| High-Confidence Competitors (8) | ||||
| Similar-Size Competitors (8) | ||||
| Similar Growth & Profitability (8) | 62.50 % (5 of 8) | 87.50 % (7 of 8) | 50.00 % (4 of 8) | 14.30 % (1 of 7) |
Source: CSIMarket API, trailing 12 months. Altman Z-Score is not shown here: it is not populated in the underlying data for any company. Percentages are of companies in each group that report the relevant metric, not of the full group size.
LUV Stock Performance relative to its Competitors
LUV Stock Performance relative to High-Confidence Competitors
LUV Stock Performance relative to Similar-Size Competitors
LUV Stock Performance relative to Similar Growth & Profitability Competitors
5 Best-Performing Tracked Competitors, Trailing 12 Months
| # | Competitor | TTM Share Price Return | vs U.S.A. 500 |
|---|---|---|---|
| 1 | Delta Air Lines Inc | 282.9% | Outperformed |
| 2 | Allegiant Travel Co | 282.9% | Outperformed |
| 3 | Sun Country Airlines Holdings Inc | 282.9% | Outperformed |
| 4 | Frontier Group Holdings Inc | 282.9% | Outperformed |
| 5 | Latam Airlines Group S a | 282.9% | Outperformed |
TTM share price return and U.S.A. 500 outperformance for Southwest Airlines Co's best-performing tracked competitors requires a Commercial License.
Source: CSIMarket API, trailing 12 months.
Southwest Airlines Co's Comment on Competition and Industry Peers
Publicly Traded Peers of Southwest Airlines Co
Revenue and income for trailing 12 months, in millions of $, except employees| Company | Market Cap | Revenues |
|---|---|---|
| Southwest Airlines Co | 20,844.04 | 30,072.00 |
| Delta Air Lines Inc | 55,291.74 | 68,287.00 |
| United Airlines Holdings Inc | 36,419.17 | 62,901.00 |
| Latam Airlines Group S a | 30,349.06 | 14,265.06 |
| American Airlines Group Inc | 8,939.17 | 55,994.00 |
| Alaska Air Group Inc | 4,411.74 | 14,763.00 |
| SUBTOTAL | 166,007.22 | 272,725.45 |
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Sources: Southwest Airlines Co's official press releases and regulatory filings; CSIMarket.com's market research; and the financial filings and press releases of the other companies cited.
Updated on:
Focus of this report: publicly traded companies. Ten additional tables on Southwest Airlines Co versus competitors, including market share analysis, are in the navigation menu under Competition. To download the tables, please subscribe.
Southwest Airlines Co's Competitors Named by the Company
Competitive relationships identified from SEC filings and corroborating sources, each with a basis and confidence.| Competitor | Basis | Confidence |
|---|---|---|
| Delta Air Lines Inc | Named by the company | 85% |
| Frontier Group Holdings Inc | Named by the company | 85% |
| Hawaiian Holdings inc | Named by the company | 85% |
| Alaska Air Group Inc | Named by the company | 85% |
| Sun Country Airlines Holdings Inc | Named by the company | 85% |
| American Airlines | Named by the company | 85% |
| United Airlines | Named by the company | 85% |
| Controladora Vuela Compania De Aviacion S a b De C v | Named by the company | 85% |
| Allegiant Travel Co | Named by the company | 85% |
Filing basis, confidence, active dates and source counts for Southwest Airlines Co's named competitors require a Commercial License.
Methodology: relationships are extracted from SEC filings (named-competitor disclosures) and corroborating sources. Named by the company = explicitly disclosed as a competitor; Inferred = derived from corroborating signals. Confidence reflects evidence strength.
Southwest Airlines Co's Business Segment Mix vs Peers
Revenue by operating segment or division, as named and reported by each company. Segment names are the filer's own and are not standardized across companies. Do not assume a same-named or similarly-named segment is defined identically between two companies. Shares are of each company's own total revenue and are not required to sum to 100% (intersegment revenue, unallocated items).| Company | Largest Segment |
|---|---|
| Delta Air Lines Inc | Airline 89.42 % |
| Skywest Inc | Sky West Airlines 84.41 % |
| Sun Country Airlines Holdings Inc | Passenger 86.38 % |
Source: operating segment revenue as reported in each company's SEC filings (10-K/10-Q), via the CSIMarket API, leaf-level reportable segments only (parent roll-up segments are excluded where sub-segments are separately disclosed).
Southwest Airlines Co's Productivity vs Peers Comparison
Revenue and income per employee, trailing 12 months, in $; market cap in millions of $| Company | Market Cap | Revenue / Employee | Income / Employee |
|---|---|---|---|
| Southwest Airlines Co | 20,844 | 413,134 | 11,499 |
| Delta Air Lines Inc | 55,292 | 662,981 | 38,350 |
| United Airlines Holdings Inc | 36,419 | 555,663 | 30,892 |
| Latam Airlines Group S a | 30,349 | 346,871 | 35,588 |
| American Airlines Group Inc | 8,939 | 402,545 | 1,452 |
| Alaska Air Group Inc | 4,412 | 410,642 | -4,868 |
| PEERS TOTAL | 145,163 | 496,368 | 14,181 |
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Southwest Airlines Co's Geographic Revenue Exposure vs Peers
Revenue by country/region as reported in each company's most recent filing. Disclosure granularity varies by filer (some report by country, others by broad region) and is shown as disclosed.| Company | Largest Market |
|---|---|
| Jetblue Airways Corp | Domestic & Canada 61.51 % |
| Sun Country Airlines Holdings Inc | United States 93.73 % |
Source: revenue geography as reported in each company's SEC filings (10-K/10-Q), via the CSIMarket API. Percentages are of that company's own total consolidated revenue for its most recent reported period.
Southwest Airlines Co's Position in Industry Market Structure
Market-capitalization share and concentration across all 15 companies in Southwest Airlines Co's industry classification, broader than the peer set above. Market cap in millions of $.Southwest Airlines Co ranks #4 of 15 companies by market capitalization in its industry, holding 11.26 % of total industry market cap. The industry's Herfindahl-Hirschman Index (HHI) is 1,778, indicating a moderately concentrated market structure (U.S. antitrust guidance: below 1,500 unconcentrated, 1,500 to 2,500 moderately concentrated, above 2,500 highly concentrated).
| Rank | Company | Market Cap | Industry Share |
|---|---|---|---|
| 1 | Delta Air Lines Inc | 55,292 | 29.87 % |
| 2 | United Airlines Holdings Inc | 36,419 | 19.67 % |
| 3 | Latam Airlines Group S a | 31,106 | 16.80 % |
| 4 | Southwest Airlines Co | 20,844 | 11.26 % |
| 5 | Ryanair Holdings Plc | 1,234 | 5.2% |
| 6 | American Airlines Group Inc | 1,234 | 5.2% |
| 7 | Copa Holdings S a | 1,234 | 5.2% |
| 8 | Alaska Air Group Inc | 1,234 | 5.2% |
| 9 | Skywest Inc | 1,234 | 5.2% |
| 10 | Allegiant Travel Co | 1,234 | 5.2% |
Market cap and industry share for the rest of Southwest Airlines Co's industry peers requires a Commercial License.
Source: CSIMarket API (daily market-structure computation) across CSIMarket's industry classification, market capitalization as of 2026-09-28.
Southwest Airlines Co's Same-Size Peers & Stock Performance
Peers chosen by closeness in market-cap rank within the same industry classification (not the named-competitor list above). Trailing 12-month total return, 3-month price momentum, beta and Sharpe ratio vs the broad U.S. market.| Rank | Company | Market Cap | TTM Return |
|---|---|---|---|
| 1 | Delta Air Lines Inc | 55,292 | 45.79 % |
| 2 | United Airlines Holdings Inc | 36,419 | 11.16 % |
| 3 | Latam Airlines Group S a | 31,106 | 19.28 % |
| 4 | Southwest Airlines Co | 20,844 | 31.32 % |
| 5 | Ryanair Holdings Plc | 1,234 | 12.3% |
| 6 | American Airlines Group Inc | 1,234 | 12.3% |
| 7 | Copa Holdings S a | 1,234 | 12.3% |
| 8 | Alaska Air Group Inc | 1,234 | 12.3% |
| 9 | Skywest Inc | 1,234 | 12.3% |
Market cap, return, momentum, beta and Sharpe ratio for the rest of Southwest Airlines Co's same-size peers requires a Commercial License.
Source: CSIMarket API (daily market-structure computation); returns and risk metrics as of 2026-09-28. Beta and Sharpe ratio are versus the broad U.S. equity market, not this industry.
Southwest Airlines Co's Profitability & Cost Structure
Trailing 12-month margins from SEC-filed financials. Operating margin is compared to the Airline industry median; gross margin, EBITDA margin and capital intensity are compared to the live industry average (17 companies).| Metric | Company | Industry | Difference |
|---|---|---|---|
| Gross Margin | 85.00 % | 50.65 % (avg) | +34.3 pp |
| Operating Margin | 3.46 % | industry median | -0.4 pp |
| EBITDA Margin | 8.57 % | 6.44 % (avg) | +2.1 pp |
| Capital Intensity (Capex / Revenue) | 9.93 % | 7.67 % (avg) | +2.3 pp |
Source: CSIMarket API, trailing 12 months. SG&A and R&D as a share of revenue have limited coverage as this data is backfilled and appear only where reported. Higher capital intensity is not inherently negative; it reflects the industry's asset requirements.
Southwest Airlines Co's Valuation vs Competitive Position
Valuation multiples vs the Airline industry average (17 companies, excluding loss-making/negative-equity outliers), alongside returns on capital for context on whether a premium or discount lines up with measurably stronger or weaker returns.| Metric | Company | Industry Average | Difference |
|---|---|---|---|
| P/E | 28.0x | 19.3x | +8.8x |
| EV / EBITDA | 9.3x | 7.6x | +1.6x |
| P/B | 3.0x | 3.5x | -0.5x |
| Return on Equity | 11.27 % | industry aggregate | -3.17 % |
| Return on Invested Capital | 4.17 % | 3.64 % (avg) | 0.53 % |
Source: CSIMarket API, trailing 12 months. A valuation premium or discount is not, by itself, a judgment of over- or under-valuation. Compare it against the return and growth context shown elsewhere on this page.
Southwest Airlines Co's Multi-Year Financial Trajectory
Fiscal-year revenue growth, operating margin, return on invested capital and P/E, as reported in SEC filings.| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth | 3.75 % | 2.11 % | -59.66 % | 74.51 % | 50.82 % | 9.56 % | 5.34 % | 2.11 % |
| Operating Margin | 14.60 % | 13.18 % | -42.18 % | 10.90 % | 4.27 % | 0.86 % | 1.17 % | 1.53 % |
| Return on Invested Capital | 11.08 % | 10.66 % | -11.66 % | 4.86 % | 2.80 % | 0.65 % | 1.02 % | 1.69 % |
| P/E | - | 13.0x | - | 28.0x | 44.6x | 39.3x | 44.7x | 47.6x |
Source: CSIMarket API, fiscal-year figures. P/E is this company's own historical ratio at each fiscal year end and can swing sharply around an earnings trough: that is real, not a data error.
Southwest Airlines Co's Strategic Group Map
Every company in Southwest Airlines Co's industry and named-competitor list, plotted by trailing 12-month revenue growth and operating margin. Southwest Airlines Co is shown in red; its closest peers by combined growth, margin and ROIC (the Similar Growth & Profitability group above) are labeled.
Source: CSIMarket API, trailing 12 months. Extreme outlier values (from near-zero-revenue companies) are excluded from the plotted cloud but never from the highlighted company or its labeled peers.
Southwest Airlines Co's BCG Growth-Share Matrix
Relative market share (vs Southwest Airlines Co's largest competitor by market cap) against industry revenue growth, using the standard textbook thresholds (1.0x share, 10% growth) a common framework, not a precision instrument.
Southwest Airlines Co falls in the Dog quadrant: relative market share of 0.38x vs its largest competitor, in an industry growing revenue 6.9% (median, trailing 12 months).
Source: CSIMarket API (market-cap share and industry revenue growth). The 10% growth and 1.0x share lines are standard textbook thresholds, not derived from this industry's own distribution.
Southwest Airlines Co's Competitive Forces (Porter's Five Forces)
Only the forces this data can support honestly are shown; the other three are marked as such rather than guessed.| Force | Assessment | Basis |
|---|---|---|
| Competitive Rivalry | Moderate | Industry HHI of 1,778 (see Industry Market Structure & Concentration above) |
| Barriers to Entry | High (capital intensive) | Capital intensity (capex / revenue) of 9.93 % vs industry average 7.67 % (see Profitability & Cost Structure above) |
| Supplier Power | Not covered on this page | See Southwest Airlines Co's dedicated suppliers page for concentration and dependency data |
| Buyer Power | Not covered on this page | See Southwest Airlines Co's dedicated customers page for concentration and dependency data |
| Threat of Substitutes | - | No systematic data source for cross-product substitution exists in this system; not estimated |
Note: this is a partial, data-grounded application of the framework, not a complete strategic assessment. Rivalry and barriers-to-entry readings are mechanical translations of the HHI and capital-intensity figures shown elsewhere on this page, not independent judgments.
Southwest Airlines Co's Industry Attractiveness & Competitive Strength
A CSIMarket composite, not a standard field: each axis is an equal-weighted average of three factors already shown elsewhere on this page (industry growth, industry profitability and rivalry for attractiveness; relative market share, profitability and growth vs industry for strength). Disclosed as a designed methodology, not a precision measurement.
Southwest Airlines Co falls in the Medium attractiveness / Medium strength cell: Selective.
Source: CSIMarket API, trailing 12 months. Each axis score is a simple 1(low)/2(medium)/3(high) average across its three inputs -- a transparent, disclosed simplification, not a validated academic scoring model.
Southwest Airlines Co's SWOT
Every point below is a fixed rule applied to a metric already shown elsewhere on this page (Market Structure, Profitability, Valuation, Run-Rate, Stock Performance, Quality Breadth) not an independent strategic assessment. A blank quadrant means no rule was met, not that none apply.Strengths
- Latest-quarter revenue run-rate is accelerating (+12.2% annualized vs trailing 12 months).
- Outperforming the U.S.A. 500 over the trailing 12 months.
Weaknesses
- Low relative market share vs the industry leader (0.38x).
Opportunities
No rule matched.
Threats
- High capital intensity requires continuous reinvestment just to keep pace with the industry.
Methodology: mechanical, rule-based SWOT. Each bullet reuses a figure already sourced and cited elsewhere on this page; nothing here is generated narrative or independent analyst judgment.
Southwest Airlines Co's Financial Strength vs Peers Comparison
Quick ratio, working capital, debt to equity and asset turnover, trailing 12 months| Company | Quick Ratio | Working Capital | Debt / Equity |
|---|---|---|---|
| Southwest Airlines Co | 0.28 | 0.49 | 0.68 |
| Delta Air Lines Inc | 0.15 | 0.41 | 0.73 |
| United Airlines Holdings Inc | 0.28 | 0.70 | 1.63 |
| Latam Airlines Group S a | 0.29 | 0.60 | - |
| American Airlines Group Inc | 0.06 | 0.53 | - |
| Alaska Air Group Inc | 0.08 | 0.50 | 1.44 |
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Quick ratio = cash / current liabilities; working capital ratio = current assets / current liabilities; asset turnover = revenue / total assets. Peers in the Blank Checks industry are excluded.
Southwest Airlines Co's Revenue and Income Growth vs Peers
Quarterly revenue and net income growth, year over year and quarter over quarter| Company | Period | Revenue Y/Y | Income Y/Y |
|---|---|---|---|
| Southwest Airlines Co | Q2 2026 | +16.4 % | +9.4 % |
| Delta Air Lines Inc | Q2 2026 | +18.7 % | -24.7 % |
| United Airlines Holdings Inc | Q2 2026 | +16.0 % | -17.3 % |
| Latam Airlines Group S a | Q4 2025 | +11.2 % | +49.7 % |
| American Airlines Group Inc | Q1 2026 | +10.8 % | - |
| Alaska Air Group Inc | Q2 2026 | +9.7 % | - |
| PEERS TOTAL | +16.2 % | -46.7 % |
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Growth is shown only where both periods are positive. Peers in the Blank Checks industry are excluded.
Southwest Airlines Co's Peers' Costs of Sales and Capital Expenditures
Context for revenue growth: peer costs and capex, year over year and quarter over quarter| Company | Period | Costs Y/Y | Capex Y/Y |
|---|---|---|---|
| Southwest Airlines Co | Q2 2026 | +402.8 % | +23.9 % |
| Delta Air Lines Inc | Q2 2026 | +57.5 % | +20.6 % |
| United Airlines Holdings Inc | Q2 2026 | +68.0 % | +4.4 % |
| Latam Airlines Group S a | Q4 2025 | +5.6 % | +34.0 % |
| American Airlines Group Inc | Q1 2026 | +11.2 % | -1.6 % |
| Alaska Air Group Inc | Q2 2026 | +60.7 % | -63.2 % |
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Southwest Airlines Co's Returns and Turnover vs Peers
ROA, ROI and ROE (trailing 12 months), receivables and inventory turnover| Company | ROA | ROI | ROE |
|---|---|---|---|
| Southwest Airlines Co | 2.87% | 4.77% | 11.27% |
| Delta Air Lines Inc | 4.76% | 9.97% | 19.30% |
| United Airlines Holdings Inc | 4.39% | 8.29% | 22.50% |
| Latam Airlines Group S a | 8.30% | 14.15% | 109.45% |
| American Airlines Group Inc | 0.32% | 0.57% | - |
| Alaska Air Group Inc | - | - | - |
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ROA = net income / total assets; ROI = net income / investments; ROE = net income / equity; turnover ratios use trailing 12 month revenue (receivables) and cost of sales (inventory).
Southwest Airlines Co's Valuation vs Peers
P/E, price to sales, PEG, price to cash flow and price to book| Company | P/E | Price / Sales |
|---|---|---|
| Southwest Airlines Co | 26.43 | 0.69 |
| Delta Air Lines Inc | 13.94 | 0.81 |
| United Airlines Holdings Inc | 10.44 | 0.58 |
| Latam Airlines Group S a | 20.60 | 2.13 |
| American Airlines Group Inc | 43.85 | 0.16 |
| Alaska Air Group Inc | - | 0.30 |
| PEERS AVERAGE | 21.37 | 0.61 |
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P/E = price / diluted EPS (trailing 12 months); PEG = P/E divided by EPS growth; the average row divides the peers' combined market cap by their combined income, sales, cash flow and equity.