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How Southwest Airlines (LUV) makes money
Southwest Airlines (LUV) made $8.4B of revenue in the third quarter 2026 (Q3 2026), +21% from a year earlier. Passenger brought in $7.8B (92%); Other brought in $621M (7%); Freight brought in $48.0M (1%). Of every dollar of revenue, 4¢ was left as operating profit, 3¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Passenger | $7.8B | 92.1% | +0.1% | +23% |
| ↳ Passenger non-loyalty | $6.1B | 72.7% | +0.3% | +25% |
| ↳ Passenger ancillary sold separately | $898M | 10.7% | +3% | +47% |
| ↳ Passenger loyalty - air transportation | $734M | 8.7% | -4% | -9% |
| Other | $621M | 7.4% | -3% | +5% |
| ↳ Loyalty program | $563M | 6.7% | -3% | +1% |
| ↳ Other | $58.0M | 0.7% | -2% | +57% |
| Freight | $48.0M | 0.6% | -4% | +14% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $8.4B | 100.0% |
| Operating profit | $379M | 4.5% |
| Income tax | $85.0M | 1.0% |
| Net earnings | $270M | 3.2% |
| Operating cash flow | $513M | 6.1% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $8.4B | +21% |
| Q2 2026 | $8.4B | +16% |
| Q1 2026 | $7.2B | +13% |
| Q4 2025 | $7.4B | +7% |
| Q3 2025 | $6.9B | +1% |
| Q2 2025 | $7.2B | -2% |
| Q1 2025 | $6.4B | +2% |
From Southwest Airlines' 10-Q filed Oct 22, 2026 (on EDGAR).
Questions
How does Southwest Airlines make money?
Southwest Airlines (LUV) made $8.4B of revenue in the third quarter 2026 (Q3 2026), +21% from a year earlier. Passenger brought in $7.8B (92%); Other brought in $621M (7%); Freight brought in $48.0M (1%). Of every dollar of revenue, 4¢ was left as operating profit, 3¢ was left as net earnings.
What is Southwest Airlines' biggest business?
Passenger: $7.8B in the third quarter 2026, 92% of revenue, +23% from a year earlier.
What is Southwest Airlines' profit margin?
Net earnings were $270M, 3.2% of revenue, in the third quarter 2026; the operating margin was 4.5%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.