Southwest reported third-quarter results very close to our expectations overall, earning $379 million in operating profit on $8.4 billion in revenue. As in the last quarter, its new seating and pricing plan led to more empty seats but higher revenue per seat than we expected.
Southwest is adapting to customer preferences for premium seats, which could increase revenue yield and profitability, which has suffered for the airline recently.
As the largest passenger carrier in the US, Southwest faces competition from legacy carriers as well as lower-cost airlines.
|
Metric
|
LUV
|
AAL
|
DAL
|
|---|---|---|---|
Price/Earnings (Normalized) | 21.60 | 23.40 | 15.27 |
Price/Book Value | 2.90 | — | 2.38 |
Price/Sales | 0.71 | 0.14 | 0.75 |
Price/Cash Flow | 8.42 | 1.96 | 6.69 |
|
Metric
|
LUV
|
AAL
|
DAL
|
|---|---|---|---|
Quick Ratio | 0.36 | 0.36 | 0.24 |
Current Ratio | 0.47 | 0.53 | 0.40 |
Interest Coverage | 7.80 | 0.49 | 8.30 |
|
Metric
|
LUV
|
AAL
|
DAL
|
|---|---|---|---|
Return on Assets (Normalized) | 4.48% | −0.39% | 4.13% |
Return on Equity (Normalized) | 17.82% | — | 16.54% |
Return on Invested Capital (Normalized) | 9.97% | 2.91% | 9.53% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Delta Air Lines Inc
DAL
| LOCK|W!mmShS | LOCK|f% | $54B | |||
| United Airlines Holdings Inc
UAL
| LOCK|$<Dc?z | LOCK|Mkw | $34B | |||
| Ryanair Holdings PLC ADR
RYAAY
| — | LOCK|Q#@ | $27B | |||
| International Consolidated Airlines Group SA ADR
ICAGY
| — | LOCK|F?v | $24B | |||
| International Consolidated Airlines Group SA
BABWF
| — | LOCK|dG | $24B | |||
| Singapore Airlines Ltd
SINGF
| — | LOCK|#gf | $16B | |||
| Singapore Airlines Ltd ADR
SINGY
| — | LOCK|kN | $16B | |||
| Air China Ltd ADR
AIRYY
| — | LOCK|<!g | $15B | |||
| American Airlines Group Inc
AAL
| LOCK|#$ZR@V% | LOCK|>%N | $8B |
United States