Southwest Airlines Profit Margin

Southwest Airlines (LUV) currently reports a profit margin of 2.78% as of June 2026. That compares with 1.43% in the prior-year period — up 94.6% year over year. That is below the Consumer Discretionary sector average of 10.31%. Use the charts on this page to explore Southwest Airlines's profit margin history and peer comparisons.

Southwest Airlines's profit margin increased from 1.43% to 2.78% — a 94.6% year-over-year increase (period ending June 2026). Watching multi-year history on the chart below helps separate one-off swings from a lasting trend.

Southwest Airlines's profit margin of 2.78% is lower than the Consumer Discretionary sector average of 10.31%. That is roughly 73.0% below the sector mean. A reading lower peers can reflect different growth expectations, capital structure, or profitability — so it is worth checking the peer comparison chart before drawing conclusions.

There is no universal 'good' profit margin, but Southwest Airlines's current 2.78% should be judged against Consumer Discretionary norms (sector average: 10.31%) and against LUV's own history. Strong, stable readings often indicate durable competitive advantage; volatile or declining ones deserve a closer look at margins and capital efficiency.

Start with the current profit margin of 2.78%, then check the historical chart for trend and the peer comparison chart for relative positioning. The Consumer Discretionary average is 10.31%. From there, open related valuation or income-statement pages for Southwest Airlines, and consider following LUV for alerts when major investors trade the stock.