Delta Air Lines vs Southwest Airlines: Revenue, Profit and Business Model
Delta Air Lines reported $63.4B of revenue in FY2025 and $5B of net income. Southwest Airlines reported $28.1B of revenue in FY2025 and $441M of net income.
Latest financial snapshot
Delta Air Lines
- Latest revenue
- $63.4B (FY2025)
- Net income
- $5B
- Net margin
- 7.9%
- Revenue growth
- +7.8% a year, FY2022–FY2025
Southwest Airlines
- Latest 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 reported FY2025 GAAP operating revenue of $63.364B, operating income of $5.822B, and net income of $5.005B. On an adjusted basis, which excludes third-party refinery sales, revenue was a record $58.3B with about a 10% operating margin, $5B in pre-tax profit, and record free cash flow of $4.6B, which Delta used to cut debt by $2.6B. American Express remuneration rose 11% to $8.2B. In Q2 2026 GAAP revenue rose 19% to $19.76B and adjusted revenue rose 14% to a record $17.67B; adjusted EPS was $1.56 as Delta absorbed the highest quarterly fuel bill in its history. Delta expects about $9B from American Express in 2026 and has a long-term target of $10B.
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.
Revenue and profit by year
Delta Air Lines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $63.4B | $5B | 7.9% | +2.8% | Source |
| FY2024 | $61.6B | — | 0.0% | +6.2% | Source |
| FY2023 | $58B | — | 0.0% | +14.8% | Source |
| FY2022 | $50.6B | — | 0.0% | — | Source |
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
- Passenger RevenueMajority
Ticket sales across domestic and international mainline and regional flights, including premium cabins and basic economy.
- Loyalty and American Express PartnershipMaterial
Revenue tied to SkyMiles miles, co-brand card spending, lounge access, and loyalty monetization.
- Cargo and Other Services
Smaller share
Cargo, maintenance, vacation packaging, ancillary travel products, and related services.
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 runs a hub-and-spoke network: hubs such as Atlanta, Detroit, Minneapolis-St. Paul, Salt Lake City, Seattle, New York (JFK and LaGuardia), Los Angeles, and Boston gather passengers onto connecting and nonstop flights. It earns money from four main sources: main cabin tickets;
Growth strategy
Delta grows mainly through premium seats, loyalty, and partners rather than adding lots of capacity. It is fitting more premium seats per aircraft, growing co-brand card spending with American Express, and relying on joint ventures with Air France-KLM and Virgin Atlantic across the Atlantic, Korean Air across the Pacific, LATAM in South America, and Aeromexico in Mexico.
Competitive advantage
Delta's advantages are its scale in Atlanta, where it runs roughly three-quarters of departures; a reputation for on-time and completion performance that business travelers pay for; and the most lucrative airline co-brand card deal in the U.S.
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. reported $63.4B (FY2025), while Southwest Airlines reported $28.1B (FY2025). By last reported revenue, Delta Air Lines, Inc. is the larger business, with Southwest Airlines reporting 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 $52.4B, 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.
Which is more financially efficient — Delta Air Lines, Inc. or Southwest Airlines?
Delta Air Lines, Inc. generates $615k / employee in revenue per employee, while Southwest Airlines generates $386k / employee. Delta Air Lines, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
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 runs a hub-and-spoke network: hubs such as Atlanta, Detroit, Minneapolis-St. 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 0.8x P/S and Southwest Airlines at 0.7x P/S. Delta Air Lines, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Southwest Airlines. 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. ($63.4B (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