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Southwest Airlines (LUV) vs. S&P 500 (SPY)
Southwest Airlines Business Overview & Revenue Model
Southwest Airlines Financial Statement Overview
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 27.48B | 26.09B | 23.81B | 15.79B | 9.05B | Gross Profit |
| 4.46B | 4.22B | 4.75B | 4.12B | -1.89B | EBIT |
| 321.00M | 224.00M | 1.02B | 1.72B | -3.82B | EBITDA |
| 2.50B | 2.39B | 2.38B | 3.03B | -2.70B | Net Income Common Stockholders |
| 465.00M | 465.00M | 539.00M | 977.00M | -3.07B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.72B | 11.47B | 12.29B | 15.50B | 13.33B | Total Assets |
| 33.75B | 36.49B | 35.37B | 36.32B | 34.59B | Total Debt |
| 8.06B | 9.23B | 9.43B | 12.28B | 12.20B | Net Debt |
| 549.00M | -59.00M | -61.00M | -199.00M | 1.14B | Total Liabilities |
| 23.40B | 25.97B | 24.68B | 25.91B | 25.71B | Stockholders Equity |
| 10.35B | 10.52B | 10.69B | 10.41B | 8.88B |
| Cash Flow | Free Cash Flow | |||
| -1.62B | -389.00M | -156.00M | 1.81B | -1.64B | Operating Cash Flow |
| 462.00M | 3.16B | 3.79B | 2.32B | -1.13B | Investing Cash Flow |
| -261.00M | -2.93B | -3.75B | -1.26B | -16.00M | Financing Cash Flow |
| -1.98B | -436.00M | -3.03B | 359.00M | 9.66B |
Southwest Airlines Technical Analysis
Southwest Airlines Risk Analysis
Southwest Airlines Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $27.13B | 8.79 | 28.63% | ― | 6.23% | 20.08% | |
77 Outperform | $34.42B | 9.99 | 26.19% | 1.03% | 6.19% | -25.26% | |
77 Outperform | $7.46B | 19.86 | 9.31% | ― | 12.56% | 69.33% | |
63 Neutral | $17.31B | 38.71 | 4.50% | 2.46% | 5.34% | -6.20% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
58 Neutral | $8.57B | 11.76 | -21.27% | ― | 2.70% | 2.20% | |
47 Neutral | $2.16B | ― | -26.60% | ― | -3.50% | -148.99% |
Southwest Airlines Earnings Call Summary
Southwest Airlines Corporate Events
On February 19, 2025, Southwest Airlines amended its Cooperation Agreement with Elliott Investment Management, increasing Elliott’s potential economic exposure in the airline’s stock from 14.9% to 19.9%. The agreement also maintains restrictions on Elliott’s beneficial ownership until April 2026. Additionally, Ryan Green, the company’s Executive Vice President & Chief Transformation Officer, announced his resignation effective April 1, 2025, which marks a significant leadership change for Southwest Airlines.
On February 17, 2025, Southwest Airlines Co. announced a significant reduction in its corporate workforce, eliminating approximately 1,750 roles, or 15% of its corporate positions, as part of a transformational plan to enhance efficiency and agility. This unprecedented decision, aimed at reducing operating costs, is expected to generate substantial savings for the company, despite an initial one-time charge for severance and benefits, with expected savings of $210 million in 2025 and $300 million in 2026.
On February 10, 2025, Southwest Airlines announced the appointment of Tom Doxey as Executive Vice President & Chief Financial Officer, effective March 10, 2025. Doxey, with a robust background in aviation finance and strategic transformation, previously led Breeze Airways to profitability and held significant roles at United Airlines. His expertise is anticipated to strengthen Southwest’s financial and operational leadership.
On February 4, 2025, Southwest Airlines announced that Eduardo F. Conrado and Elaine Mendoza will not seek re-election to the Board of Directors and will retire following the 2025 Annual Meeting. Their departure is aligned with a Cooperation Agreement involving Elliott Investment Management and related entities, and is not due to any disagreements with the company’s operations or policies.
On January 30, 2025, Southwest Airlines reported record financial results for the fourth quarter and full year 2024, with net income of $261 million and $465 million, respectively. The company achieved record operating revenues, driven by strong execution of tactical initiatives and robust demand. Additionally, Southwest Airlines announced a $750 million accelerated share repurchase program, while expressing optimism about its ongoing ‘Southwest. Even Better.’ transformational plan, including a newly amended co-brand agreement with Chase. The company aims to enhance shareholder returns and modernize customer experience, supported by a positive industry backdrop and strategic cost reduction targets.
Southwest Airlines Co. announced a change in the settlement method for its 1.250% convertible senior notes due 2025, opting to settle in cash. This decision, communicated to securityholders and the trustee, may impact the company’s financial operations and stakeholder relations as it approaches the maturity of these notes.
Southwest Airlines announced the retirement of two of its long-serving executives, Tammy Romo, Executive Vice President & Chief Financial Officer, and Linda Rutherford, Chief Administration Officer, effective April 1, 2025. Their departures mark a significant transition for the company as it begins the search for Romo’s replacement, highlighting their substantial contributions to the company’s achievements and the shaping of its future.
Southwest Airlines Co. has completed a sale-leaseback transaction with BBAM for 35 of its Boeing 737-800 aircraft, resulting in gross proceeds of $871 million and expected gains of $92 million for Q4 2024. This transaction is part of Southwest’s fleet monetization strategy aimed at reducing operational costs and supporting capital allocation for future fleet updates and shareholder returns.