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Southwest Airlines LUV Return on equity

Return on equity at other companies

Delta Air Lines logo
Delta Air LinesDAL
25%-2.5pp
United Airlines Holdings logo
United Airlines HoldingsUAL
25.7%-7.8pp

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$22.81B-7.3%
Enterprise value$25.87B+8.9%
P/E27.9×-17.1×
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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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 return on equity?
Southwest Airlines (LUV) reported return on equity of 10.1% in Q1 2026.
How has Southwest Airlines's return on equity changed year-over-year?
Southwest Airlines's return on equity increased by 80.2% year-over-year, from 5.6% to 10.1%.
What is the long-term trend for Southwest Airlines's return on equity?
Over 2 years (2021 to 2025), Southwest Airlines's return on equity has grown at a -17.3% compound annual growth rate (CAGR), from -27.5% to 18.8%.
What does return on equity mean?
How much profit the company earns on the money shareholders have invested.
How do you interpret return on equity?
Higher is better, but very high ROE can be manufactured by leverage — a thin equity base inflates the ratio. Read it next to debt-to-equity and ROIC to tell genuine returns from balance-sheet engineering.
How does return on equity compare across companies?
Comparable across peers, with the leverage caveat. Negative or near-zero equity makes ROE meaningless, so it is suppressed there.