Southwest
American low-cost airline, the template every budget carrier copied, and operator of the world’s largest Boeing 737 fleet.
28 figures on Southwest, drawn from 3 Modern MBA case studies.
The figures
US dollars5
| Against its own chart | |||
|---|---|---|---|
| Gross revenue in billions of dollars, 2023 | $26B | 4th of 8 · top $58B | Why budget airlines stopped winning |
| Annual revenue from credit cards and mileage sales | $2.6B | 4th of 8 · top $8.2B | Why Asian airlines are so much better |
| Ancillary fees earned in billions of dollars, 2023 | $0.9B | 6th of 7 · top $7.9B | Why budget airlines stopped winning |
| Operating income of every major US airline in 2025, with and without loyalty revenue · With loyalty revenue | $0.4B | 4th of 7 · top $5.8B | Why Asian airlines are so much better |
| Operating income of every major US airline in 2025, with and without loyalty revenue · Without it | −$2.2B | 5th of 7 · top $1.5B | Why Asian airlines are so much better |
Percentages21
| Against its own chart | |||
|---|---|---|---|
| Load factor, 2023 | 83.4% | 5th of 8 · top 85.0% | Why budget airlines stopped winning |
| Average share of revenue spent on fuel and on labor, 2010 to 2023 · Labor | 40% | 1st of 8 · top 40% | Why budget airlines stopped winning |
| Second-highest market share at legacy fortresses, 2023 · Phoenix | 34% | 1st of 4 · top 34% | Why budget airlines stopped winning |
| Second-highest market share at legacy fortresses, 2023 · Denver | 32% | 2nd of 4 · top 34% | Why budget airlines stopped winning |
| Average share of revenue spent on fuel and on labor, 2010 to 2023 · Fuel | 27% | 3rd of 8 · top 31% | Why budget airlines stopped winning |
| Annual operating margin · 2015 | 18% | 1st of 9 · top 18% | Why budget airlines stopped winning |
| US-based airlines by share of the domestic market, 2023 | 17% | 2nd of 8 · top 18% | Why budget airlines stopped winning |
| Annual operating margin · 2016 | 17% | 2nd of 9 · top 18% | Why budget airlines stopped winning |
| Second-highest market share at legacy fortresses, 2023 · Washington DC | 15% | 3rd of 4 · top 34% | Why budget airlines stopped winning |
| Annual operating margin · 2017 | 15% | 3rd of 9 · top 18% | Why budget airlines stopped winning |
| Annual operating margin · 2018 | 14% | 4th of 9 · top 18% | Why budget airlines stopped winning |
| Annual operating margin · 2019 | 13% | 5th of 9 · top 18% | Why budget airlines stopped winning |
| Median annual operating margin, 2014–2024 | 12% | 1st of 10 · top 12% | Why movie theaters survive off popcorn |
| Average operating margin, 2009 to 2019 | 10% | 3rd of 7 · top 16% | Why budget airlines stopped winning |
| Annual operating margin · 2014 | 10% | 6th of 9 · top 18% | Why budget airlines stopped winning |
| Second-highest market share at legacy fortresses, 2023 · Atlanta | 9% | 4th of 4 · top 34% | Why budget airlines stopped winning |
| Annual operating margin · 2013 | 7% | 7th of 9 · top 18% | Why budget airlines stopped winning |
| Share of each carrier's passenger revenue earned on international routes | 4% | 9th of 9 · top 100% | Why Asian airlines are so much better |
| Annual operating margin · 2012 | 4% | 8th of 9 · top 18% | Why budget airlines stopped winning |
| Annual operating margin · 2011 | 2% | 9th of 9 · top 18% | Why budget airlines stopped winning |
| Annual operating margin by carrier | 1% | 5th of 7 · top 10% | Why budget airlines stopped winning |
Counts2
| Against its own chart | |||
|---|---|---|---|
| Number of aircraft in fleet, 2023 | 817 | 4th of 8 · top 1,273 | Why budget airlines stopped winning |
| Average price-to-earnings ratio, 2009 to 2019 | 12 | 4th of 7 · top 15 | Why budget airlines stopped winning |
Case studies covering Southwest
Case study — TravelWhy Asian airlines are so much betterAsian carriers deliver a service Americans barely recognize. American airlines earn more doing far less.11 min read
Case study — Media & entertainmentWhy movie theaters survive off popcornTheaters keep less than half your ticket and lose money on the film. The popcorn is not a joke, it is the plan.10 min read
Case study — TravelWhy budget airlines stopped winningThe low-cost carriers say the industry is rigged. It isn't. The legacy carriers just copied the only thing they had.16 min readNew episodes
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