Is Southwest a profitable airline?

Southwest Airlines gross profit for the twelve months ending June 30, 2023 was $6.076B, a 0.33% decline year-over-year. Southwest Airlines annual gross profit for 2022 was $6.103B, a 13.29% increase from 2021. Southwest Airlines annual gross profit for 2021 was $5.387B, a 948.35% decline from 2020.



As of early 2026, Southwest Airlines remains profitable, but it is currently navigating a significant "transformation" period to maintain its financial health. In January 2026, the airline reported record fourth-quarter operating revenues of $7.4 billion and projected a massive 330% profit growth for the full year 2026 compared to 2025. This surge is driven by a radical shift in their business model; for the first time in its history, Southwest is introducing assigned seating, extra-legroom cabin sections, and a "basic economy" fare to compete more directly with United, Delta, and American. Despite challenges like "Winter Storm Fern" in early 2026 and rising labor costs, the airline has maintained a healthy Piotroski F-Score (a measure of financial strength) of 8 out of 9. While their operating margins are lower than they were a decade ago (hovering around 1-2%), the airline's "all-Boeing 737" fleet strategy and its move to monetize seat selection are aimed at boosting its net margin. It remains one of the most stable industrial players in the U.S. transportation sector with a market cap of over $21 billion.

People Also Ask

Southwest Airlines' financial metrics Southwest Airlines brings in more operating revenue than it pays in operating expenses, an indication of the financial stability for the company. The airline held. Southwest Airlines is one of the top ten largest airlines in the North America, in terms of operating revenue in 2022.

MORE DETAILS

The most profitable passenger airline in North America in 2022 was Delta Air Lines, with operating revenue of almost 50.6 billion U.S. dollars, followed closely by American Airlines, with nearly 49 billion U.S. dollars in revenue.

MORE DETAILS

Delta Air Lines is the largest by revenue, assets value and market capitalization. American Airlines Group is the largest by number of employees.

MORE DETAILS

The most profitable passenger airline in North America in 2022 was Delta Air Lines, with operating revenue of almost 50.6 billion U.S. dollars, followed closely by American Airlines, with nearly 49 billion U.S. dollars in revenue.

MORE DETAILS

Strong Balance sheet: Southwest's total debt and operating lease liabilities stood at $9.3 billion as of June 30, 2023, down from a peak of $13.3 billion during the pandemic. Total debt remains well below Southwest's total cash and short-term investments of $12.2 billion.

MORE DETAILS

Southwest Airlines ranked as the second best domestic airline, according to Bounce's 2023 Airline Index.

MORE DETAILS

Thai Vietjet awarded 'The Fastest Growing Airline Brand' at Global Brand Awards 2023.

MORE DETAILS

easyJet continues to have one of the strongest, investment grade, balance sheets in European aviation. As at 30 September 2023 our net cash position was c.£40 million (30 September 2022: £670 million net debt). During the 2023 financial year, c.£1.2bn of gross debt has been repaid.

MORE DETAILS

Emirates is consistently one of the most expensive first-class options, but the details make the flight not only enjoyable but an absolute pleasure.

MORE DETAILS

Atlanta Hartsfield-Jackson International Airport remains the busiest airport in the world with 5.2 million seats in September 2023. The composition of the Global Top 10 Busiest Airports is also the same as last month but there are a few changes to the rankings.

MORE DETAILS

The Pinnacle of Luxury: The Residence by Etihad Airways The most expensive flight in the world is operated by Etihad Airways from New York to Abu Dhabi. This flight, aptly named 'The Residence,' is unlike any other.

MORE DETAILS

British Airways' fight for survival However, the company has been on its rebound path since the last months of 2020. As of 2022, the revenue of British Airways jumped from 3.7 billion to 11 billion GDP. Consecutively, the reported net profit amounted to 61 million GDP.

MORE DETAILS

Airlines get an average of just under $189 of revenue for each passenger they fly, which include the base fare, ancillaries such as bag fees, fuel surcharges, and revenue for any cargo carried.

MORE DETAILS

Strong demand and rising ticket prices offset Ryanair's skyrocketing operational costs through 2023, with revenue increasing to €10.78 billion. Photo: Ryanair. Despite a slow Q4 and soaring operational costs, Irish low-cost carrier Ryanair raked in a near-record €1.43 billion ($1.54 billion) profit in 2022.

MORE DETAILS