Delta Air Lines vs Southwest Airlines: Revenue, Profit and Business Model
Delta Air Lines had $64.5B of annual revenue in FY2025. Southwest Airlines had $28.1B of annual revenue in FY2025 and $441M of net income.
Latest financial snapshot
Delta Air Lines
- Latest annual revenue
- $64.5B (FY2025)
- Net income
- Unavailable here
- Net margin
- —
- Revenue growth
- +8.4% a year, FY2022–FY2025
Southwest Airlines
- Latest annual revenue
- $28.1B (FY2025)
- Net income
- $441M
- Net margin
- 1.6%
- Revenue growth
- +3.6% a year, FY2016–FY2025
Financial summary
Delta Air Lines
Delta delivers industry-leading profitability and strong free cash flow generation. Operating revenues reached $50.58 billion in 2022, expanded to $58.05 billion in 2023, reached $61.64 billion in 2024, and surpassed $64.50 billion in 2025. Operating margins consistently lead the US legacy airline group at 10% to 12%, driven by premium seat mix and Amex partnership payments. Net income consistently ranges between $4.5 billion and $5.5 billion, enabling Delta to pay down billions in pandemic-era debt while funding fleet modernizations (Airbus A321neo and A350 widebodies).
Southwest Airlines
Southwest was profitable every year from 1973 through 2019, a 47-year streak that ended with the 2020 pandemic loss. Since then margins have stayed thin: FY2025 revenue reached $28.063B with operating income of $428M. The December 2022 holiday operational meltdown cost the company more than $1B in total and added pressure. 2026 has been better: Q1 operating income of $330M (versus a loss a year earlier) and Q2 net income of $233M on record $8.4B revenue, although nearly $900M in extra fuel expense in Q2 led management to guide full-year adjusted EPS to $3.25-$4.25. Southwest Airlines Co. is a colossal American airline and the world's absolute largest low-cost carrier, sustaining a market valuation typically over $17 billion.
Revenue and profit by year
Delta Air Lines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $64.5B | — | — | +4.6% | |
| FY2024 | $61.6B | — | — | +6.2% | |
| FY2023 | $58B | — | — | +14.8% | |
| FY2022 | $50.6B | — | — | — |
Southwest Airlines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $28.1B | $441M | 1.6% | +2.1% | Source |
| FY2024 | $27.5B | $465M | 1.7% | +5.3% | Source |
| FY2023 | $26.1B | $465M | 1.8% | +9.6% | Source |
| FY2022 | $23.8B | $539M | 2.3% | +50.8% | Source |
| FY2021 | $15.8B | $977M | 6.2% | +74.5% | Source |
| FY2020 | $9B | -$3.1B | -34.0% | -59.7% | Source |
| FY2019 | $22.4B | $2.3B | 10.3% | +2.1% | Source |
| FY2018 | $22B | $2.5B | 11.2% | +3.8% | Source |
| FY2017 | $21.2B | $3.4B | 15.9% | +3.7% | Source |
| FY2016 | $20.4B | $2.2B | 10.7% | — | Source |
Where the revenue comes from
Delta Air Lines
- Core Commercial Aviation, Global Passenger Airline & Cargo Logistics Platform Operations
~48% of Total Net Revenue
Direct software licensing, enterprise subscription access, platform usage fees, or primary transaction commissions derived from Delta Air Lines, Inc.'s flagship commercial solutions.
- Enterprise Solutions & Value-Added Services
~28% of Total Net Revenue
Custom enterprise deployments, premium capability tiers, specialized API integrations, and dedicated technical client support contracts.
- Ancillary Services & Strategic Ecosystem Billing
~14% of Total Net Revenue
Complementary service fees, partner ecosystem revenue sharing, financing fees, and transactional processing services.
- Professional Services, Maintenance & Support
~10% of Total Net Revenue
Onboarding implementation, specialized compliance consulting, customer training programs, and annual service-level agreement retainers.
Southwest Airlines
- Passenger revenueMajority
Ticket sales across fare products, plus seat, bag and bundle fees that Southwest added in 2025-2026. Passenger revenue is the bulk of operating revenue.
- Loyalty and co-branded credit card
Significant
Sales of Rapid Rewards points to partners, chiefly Chase for the co-branded Visa card. Card acquisitions rose 28% year over year in Q2 2026.
- Checked bags and paid seatingGrowing
Bag fees began May 28, 2025 for most fares, and assigned standard, preferred and extra-legroom seats launched January 27, 2026.
- Southwest Vacations and otherSmall
Vacation packages, partner commissions and other ancillary revenue.
- FreightSmall
Cargo carried in the bellies of passenger aircraft.
Business model and strategy
Delta Air Lines
How it makes money
Delta Air Lines operates a commercial network airline business model centered on hub-and-spoke passenger routing, premium cabin segmentation, and high-margin loyalty monetization. In passenger operations, Delta segments customer cabins across basic economy, main cabin, Delta Comfort+ (extra legroom), domestic First Class, and lie-flat Delta One suites on transcontinental and long-haul international routes.
Growth strategy
Delta grows by capturing premium corporate travel share, deepening international alliance joint ventures (allowing Delta to share transatlantic and transpacific revenues with partner airlines without bearing 100% of flight operating costs), and expanding high-margin TechOps third-party engine maintenance revenues.
Competitive advantage
Delta Air Lines maintains a distinct competitive moat among US legacy airlines through its superior operational reliability, premium revenue mix, and lucrative loyalty economics. Delta consistently leads major US airlines in on-time departures, completion factors, and low cancellation rates, earning premium pricing power among high-spending corporate business travelers.
Southwest Airlines
How it makes money
Southwest makes money mainly by selling passenger tickets on a domestic-focused, point-to-point network flown with Boeing 737s, plus loyalty revenue from Rapid Rewards (nearly 100 million members in mid-2026) and the Chase co-branded credit card.
Growth strategy
After activist investor Elliott Investment Management built a stake of roughly $1.9B in 2024 and pushed for change, Southwest launched a broad transformation plan.
Competitive advantage
Southwest's main structural advantages are a single aircraft family (the Boeing 737), which simplifies crew training and maintenance, a dense point-to-point network built around secondary and mid-size airports such as Dallas Love Field, Chicago Midway and Houston Hobby, and a large loyalty base. It was ranked #1 in economy customer satisfaction in the J.D.
Questions about Delta Air Lines vs Southwest Airlines
Which company has higher revenue — Delta Air Lines, Inc. or Southwest Airlines?
Delta Air Lines, Inc. had $64.5B (FY2025), while Southwest Airlines had $28.1B (FY2025). By latest annual revenue, Delta Air Lines, Inc. is the larger business, with Southwest Airlines showing a smaller revenue base.
What is the market cap of Delta Air Lines, Inc. vs Southwest Airlines?
Delta Air Lines, Inc.'s market capitalisation stands at $40.0B, while Southwest Airlines's is $20.9B. Delta Air Lines, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Southwest Airlines.
How does revenue per employee compare for Delta Air Lines, Inc. and Southwest Airlines?
Delta Air Lines, Inc. has $645k / employee in revenue per employee, while Southwest Airlines has $386k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Delta Air Lines, Inc. and Southwest Airlines make money?
Delta Air Lines, Inc. and Southwest Airlines generate revenue in fundamentally different ways. Delta Air Lines, Inc.: Delta Air Lines operates a commercial network airline business model centered on hub-and-spoke passenger routing, premium cabin segmentation, and high-margin loyalty monetization. Southwest Airlines: Southwest makes money mainly by selling passenger tickets on a domestic-focused, point-to-point network flown with Boeing 737s, plus loyalty revenue from Rapid Rewards (nearly 100 million members in mid-2026) and the Chase co-branded credit card.
Which company is valued higher relative to revenue — Delta Air Lines, Inc. or Southwest Airlines?
On a price-to-sales (P/S) basis, Delta Air Lines, Inc. trades at 0.6x P/S and Southwest Airlines at 0.7x P/S. Southwest Airlines commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Delta Air Lines, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Delta Air Lines, Inc. bigger than Southwest Airlines?
By last reported revenue, Delta Air Lines, Inc. ($64.5B (FY2025)) is the larger company compared to Southwest Airlines ($28.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Delta Air Lines vs Southwest Airlines overview