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Southwest Airlines LUV Free cash flow margin

Free cash flow margin at other companies

United Airlines Holdings logo
United Airlines HoldingsUAL
7%+6.0pp

Other financials

Income statement

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Revenue$7.2B+12.8%
Operating income$330.0M+248%
Net income$227.0M+252%
EPS (diluted)$0.45+273%

Balance sheet

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Cash & equivalents$3.3B-59.1%
Total debt$6.4B-20.0%
Total equity$6.9B-26.6%
Total assets$29.4B-11.6%

Cash flow

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Operating cash flow$1.4B+64.9%
CapEx$630.0M+19.5%
Free cash flow$788.0M+137%

Valuation

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Market cap$23.45B-7.3%
Enterprise value$26.51B+8.9%
P/E28.7×-17.6×
P/S0.8×-0.1×

Profitability

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Operating margin3.4%+1.6pp
Net margin2.8%+0.8pp

Returns & leverage

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Return on equity10.1%+4.5pp
Debt / equity0.9×+0.1×
Current ratio0.5×-0.3×

Where this comes from

Calculated from Southwest Airlines’s reported figures.

Based on trailing twelve months.

The official record: Southwest Airlines’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Southwest Airlines's free cash flow margin?
Southwest Airlines (LUV) reported free cash flow margin of -1.4% in Q1 2026.
How has Southwest Airlines's free cash flow margin changed year-over-year?
Southwest Airlines's free cash flow margin increased by 34.9% year-over-year, from -2.1% to -1.4%.
What is the long-term trend for Southwest Airlines's free cash flow margin?
Over 4 years (2021 to 2025), Southwest Airlines's free cash flow margin has grown at a -21.3% compound annual growth rate (CAGR), from 19.1% to -7.4%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.