Southwest Airlines Co. (LUV) — Free Cash Flow Yield
Industrials
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
| Metric | Value |
|---|---|
| FCF Yield | -3.8% |
| Industrials Sector Avg FCF Yield | 3.8% |
| Annual Free Cash Flow | $-831M |
| Market Cap | $21.7B |
| P/E Ratio | 27.7x |
Southwest Airlines Co.'s FCF yield of -3.8% is below the Industrials sector average (3.8%).
Frequently Asked Questions
What is Southwest Airlines Co.'s (LUV) free cash flow yield?
Southwest Airlines Co.'s (LUV) free cash flow yield is -3.8%. That is below the Industrials sector average (3.8%).
Is LUV's free cash flow yield good?
At -3.8%, LUV's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Southwest Airlines Co. generate?
Southwest Airlines Co. generated $-831M in free cash flow, against a market cap of $21.7B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →