Southwest Airlines vs United Airlines: Revenue, Profit and Business Model
Southwest Airlines reported $28.1B of revenue in FY2025 and $441M of net income. United Airlines reported $59.1B of revenue in FY2025 and $3.4B of net income.
Latest financial snapshot
Southwest Airlines
- Latest revenue
- $28.1B (FY2025)
- Net income
- $441M
- Net margin
- 1.6%
- Revenue growth
- +3.6% a year, FY2016–FY2025
United Airlines
- Latest revenue
- $59.1B (FY2025)
- Net income
- $3.4B
- Net margin
- 5.7%
- Revenue growth
- +5.5% a year, FY2016–FY2025
Financial summary
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.
United Airlines
United's revenue grew from $43.3 billion in 2019 to a record $59.1 billion in 2025, and net income reached $3.4 billion in 2025 against $3.1 billion in 2024. Operating cash flow was $8.4 billion in 2025. In 2026 the story is fuel: after oil prices spiked in March, United cut full-year adjusted EPS guidance to $7-$11, then raised it to $9-$11 in July after Q2 revenue rose 16% to $17.7 billion and yields climbed 12%. Q2 fuel expense was up $2.3 billion (84%), and the company said it expected to recover all of the increase through fares by Q4. Management is targeting an investment-grade credit rating in 2026.
Revenue and profit by year
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 |
United Airlines
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $59.1B | $3.4B | 5.7% | +3.5% | Source |
| FY2024 | $57.1B | $3.1B | 5.5% | +6.2% | Source |
| FY2023 | $53.7B | $2.6B | 4.9% | +19.5% | Source |
| FY2022 | $45B | $737M | 1.6% | +82.5% | Source |
| FY2021 | $24.6B | -$2B | -8.0% | +60.4% | Source |
| FY2020 | $15.4B | -$7.1B | -46.0% | -64.5% | Source |
| FY2019 | $43.3B | $3B | 7.0% | +4.7% | Source |
| FY2018 | $41.3B | $2.1B | 5.1% | +9.5% | Source |
| FY2017 | $37.7B | $2.1B | 5.7% | +3.2% | Source |
| FY2016 | $36.6B | $2.2B | 6.1% | — | Source |
Where the revenue comes from
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.
United Airlines
- Passenger tickets
- Premium cabins
- Basic Economy
- MileagePlus and co-brand revenue
- Cargo
- United Club memberships
- Baggage and seat fees
Business model and strategy
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.
United Airlines
How it makes money
United makes money by filling a hub-and-spoke network. Domestic and regional flights feed passengers into seven U.S. hubs, where they connect to long-haul routes across the Atlantic, Pacific and Latin America. Ticket sales are the core: passenger revenue was $53.4 billion of the $59.1 billion total in 2025.
Growth strategy
United is investing in premium seating, larger aircraft, international routes, operational reliability, MileagePlus, airport clubs, digital service, Starlink connectivity, and network depth at core hubs.
Competitive advantage
United's advantage is its hub network, international route breadth, Star Alliance connectivity, premium-cabin expansion, MileagePlus loyalty base, corporate account strength, and major positions at airports such as Chicago O'Hare, Newark, Denver, Houston, San Francisco, Washington Dulles, and Los Angeles.
Questions about Southwest Airlines vs United Airlines
Which company has higher revenue — Southwest Airlines or United Airlines Holdings, Inc.?
Southwest Airlines reported $28.1B (FY2025), while United Airlines Holdings, Inc. reported $59.1B (FY2025). By last reported revenue, United Airlines Holdings, Inc. is the larger business, with Southwest Airlines reporting a smaller revenue base.
What is the market cap of Southwest Airlines vs United Airlines Holdings, Inc.?
Southwest Airlines's market capitalisation stands at $20.9B, while United Airlines Holdings, Inc.'s is $36.1B. United Airlines Holdings, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Southwest Airlines.
Which is more financially efficient — Southwest Airlines or United Airlines Holdings, Inc.?
Southwest Airlines generates $386k / employee in revenue per employee, while United Airlines Holdings, Inc. generates $522k / employee. United Airlines Holdings, 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 Southwest Airlines and United Airlines Holdings, Inc. make money?
Southwest Airlines and United Airlines Holdings, Inc. generate revenue in fundamentally different ways. 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. United Airlines Holdings, Inc.: United makes money by filling a hub-and-spoke network.
Which company is valued higher relative to revenue — Southwest Airlines or United Airlines Holdings, Inc.?
On a price-to-sales (P/S) basis, Southwest Airlines trades at 0.7x P/S and United Airlines Holdings, Inc. at 0.6x P/S. Southwest Airlines commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to United Airlines Holdings, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Southwest Airlines bigger than United Airlines Holdings, Inc.?
By last reported revenue, United Airlines Holdings, Inc. ($59.1B (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 Southwest Airlines vs United Airlines overview