How does Southwest Airlines (LUV) make money?

Southwest Airlines (LUV) primarily makes money through Passenger, which accounts for 91.1% of total revenue. For TTM through Q1 2026, Southwest Airlines generated $28.88B in total revenue with a net profit margin of 2.8%.

What is Southwest Airlines (LUV) gross profit margin?

Southwest Airlines (LUV) reported a gross profit margin of 16.5% for TTM through Q1 2026, equivalent to $4.75B in gross profit. This means Southwest Airlines retains 16.5% of each revenue unit after direct costs of production.

What is Southwest Airlines (LUV) operating profit margin?

Southwest Airlines (LUV) reported an operating profit margin of 3.4% for TTM through Q1 2026, equivalent to $981.00M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Southwest Airlines (LUV) net profit margin?

Southwest Airlines (LUV) reported a net profit margin of 2.8% for TTM through Q1 2026, equivalent to $817.00M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Southwest Airlines (LUV) spend on capital expenditures?

Southwest Airlines (LUV) spent $2.80B on capital expenditures in TTM through Q1 2026 (9.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Southwest Airlines (LUV) free cash flow?

Southwest Airlines (LUV) generated −$401.00M in free cash flow for TTM through Q1 2026 (-1.4% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Southwest Airlines (LUV) effective tax rate?

Southwest Airlines (LUV) had an effective tax rate of 21.4% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Southwest Airlines (LUV) Makes Money: A Visual Guide

Southwest Airlines (LUV) generated $28.88B in revenue, earning $817.00M in net profit (2.8% margin). Its largest revenue source is Passenger (91.1% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Southwest Airlines (LUV) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 23, 2026).

Frequently asked questions

How does Southwest Airlines (LUV) make money?: Southwest Airlines (LUV) primarily makes money through Passenger, which accounts for 91.1% of total revenue. For TTM through Q1 2026, Southwest Airlines generated $28.88B in total revenue with a net profit margin of 2.8%.
What is Southwest Airlines (LUV) gross profit margin?: Southwest Airlines (LUV) reported a gross profit margin of 16.5% for TTM through Q1 2026, equivalent to $4.75B in gross profit. This means Southwest Airlines retains 16.5% of each revenue unit after direct costs of production.
What is Southwest Airlines (LUV) operating profit margin?: Southwest Airlines (LUV) reported an operating profit margin of 3.4% for TTM through Q1 2026, equivalent to $981.00M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Southwest Airlines (LUV) net profit margin?: Southwest Airlines (LUV) reported a net profit margin of 2.8% for TTM through Q1 2026, equivalent to $817.00M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Southwest Airlines (LUV) spend on capital expenditures?: Southwest Airlines (LUV) spent $2.80B on capital expenditures in TTM through Q1 2026 (9.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Southwest Airlines (LUV) free cash flow?: Southwest Airlines (LUV) generated −$401.00M in free cash flow for TTM through Q1 2026 (-1.4% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Southwest Airlines (LUV) effective tax rate?: Southwest Airlines (LUV) had an effective tax rate of 21.4% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.