AAL vs LUV: American Airlines Group and Southwest Airlines compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Southwest Airlines is the larger company, worth $19.3B, about 2.4 times American Airlines Group.
- Southwest Airlines grew revenue faster over the last year (+16.4% vs +16.3%).
- Southwest Airlines keeps more of each dollar of revenue as operating profit (3.5% vs 1.7%).
- On earnings, Southwest Airlines is the cheaper stock (26.3x vs 39.9x).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | AAL | LUV |
|---|---|---|
| Market cap | $8.2B | $19.3B |
| Share price | $12.76 | $41.66 |
| Revenue (last fiscal year) | $54.6B | $28.1B |
| Free cash flow (last fiscal year) | -$680M | -$831M |
| Revenue growth, last year | +16.3% | +16.4% |
| Revenue growth per year, last 5 fiscal years | +16.3% | +15.5% |
| Operating margin | 1.7% | 3.5% |
| Net margin | -0.56% | 2.8% |
| Return on equity | — | 11.8% |
| P/E (trailing) | 39.9x | 26.3x |
| Price / free cash flow | — | — |
| EV / EBITDA | 11.4x | 8.58x |
| FCF growth the price implies | — | — |
| Dividend yield | — | 1.8% |
| Debt / equity | — | 3.25x |
| Fundamental grade | F | D |
| Superinvestors holding it | 5 | 6 |
| Insider purchases, last 12 months | 0 | 0 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
American Airlines Group
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $29.9B | $496M | -3.5% |
| 2022 | $49.0B | -$373M | 3.3% |
| 2023 | $52.8B | $1.2B | 5.7% |
| 2024 | $54.2B | $1.3B | 4.8% |
| 2025 | $54.6B | -$680M | 2.7% |
Southwest Airlines
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $15.8B | $1.8B | 10.9% |
| 2022 | $23.8B | -$134M | 4.3% |
| 2023 | $26.1B | -$356M | 0.86% |
| 2024 | $27.5B | -$1.6B | 1.2% |
| 2025 | $28.1B | -$831M | 1.5% |
Where the revenue comes from
American Airlines Group · by products, 2025
Passenger travel$45.6B83%
Loyalty revenue - travel$4.0B7%
Loyalty revenue - marketing services$3.5B6%
Cargo$839M2%
Other revenue$640M1%
Southwest Airlines · by products, 2025
Passenger$25.5B91%
Other$2.4B8%
Freight$171M1%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open AAL in InvestinglyQuestions
Which is bigger, American Airlines Group or Southwest Airlines?
Southwest Airlines (LUV), at $19.3B against $8.2B.
Is AAL or LUV cheaper?
By trailing P/E, Southwest Airlines (26.3x) is cheaper than American Airlines Group (39.9x). A lower multiple can also mean the market expects less growth.
Which grows faster, AAL or LUV?
Southwest Airlines: revenue grew +16.4% over the last year, against +16.3%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.