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This article discusses Southwest Airlines’ Revenue By Segment split across Passenger, Freight, and Other from 2016-2021.
Southwest Airlines generates its revenues from the following segments:
|Segment||Q1 2020||Q1 2021||YoY Growth||Revenue Share Q1 2021|
(figures in millions, except percentages)
Southwest Airlines’ total revenue declined from $4239 million in Q1 2020 to $2050 million in Q1 2021, marking a decline of 51.64% on a year-on-year basis. The reason for the decline in revenue was the lockdown restrictions imposed in most parts of the world because of the COVID-19 pandemic. As a result, there was no demand for passenger ticket bookings as the governments of various countries imposed restrictions on air travel to limit the spread of the virus.
In March 2021, the company announced an expansion plan in which it will launch its operations on 19 new domestic and international routes. The new routes include Hawaii, Mexico, Miami, California, and many more.
Southwest Airlines’ revenue from the Passenger segment declined from $3850 million in Q1 2020 to $1710 million in Q1 2021, a decline of 55.58% on a year-on-year basis. In Q1 2021, this segment contributed 83.41% to Southwest Airlines’ total revenue.
This segment includes the revenue earned from the ticket bookings made by the passengers. Southwest Airlines offers travel to more than 100 destinations across different regions of the United States. The company offers various services to its passengers like free WiFi, free live streaming TV and movies, free in-flight non-alcoholic beverages, messaging, music, and many more facilities on a majority of its fleet.
Southwest Airlines fare structure includes three main categories:
The company also offers other services like upgraded boarding and early check-in to its customers.
Southwest Airlines’ revenue from the Freight segment increased from $39 million in Q1 2020 to $43 million in Q1 2021, marking an increase of 10.26% on a year-on-year basis. In Q1 2021, the Freight segment contributed 2.10% to the company’s total revenue.
Freight charges include revenue earned by the company from the transportation of goods, commodities, and other essential products from one place to another. Southwest Airlines offers same-day cargo service across different cities of the United States. The company also offers cargo service to different regions like Australia, Japan, Jamaica, Mexico, and Canada.
Southwest Airlines’ revenue from Other segments declined from $350 million in Q1 2020 to $297 million in Q1 2021, a decline of 15.14% on a year-on-year basis. In Q1 2021, Other segments contributed 14.49% to Southwest Airlines’ total revenue.
Southwest Airlines is an American airline company. It was founded by Herb Kelleher in 1967. Its main office is located in Dallas, Texas, United States. Gary Kelly is the current Chairman and CEO of the company. Southwest Airlines faces tough competition from American Airlines, Delta Airlines, and United Airlines. In the US domestic market, Southwest Airlines has a market share of 20% in air travel.
Over the years, Southwest Airlines has acquired companies like Morris Air, Muse Air, and Air Tran Airways. These acquisitions have helped the company to increase its network and fight competition. In the US, the company has operating bases in Baltimore, Denver, Atlanta, Chicago, Dallas, Las Vegas, Houston, Los Angeles, Phoenix, Orlando, and Oakland. Southwest Airlines employs more than 57,000 people. Southwest Airlines offers various vacation deals and offers and has tie-ups with many resorts and hotels like AM Resorts, Walt Disney World Resort, Aruba Resorts, and Marriott International.
Southwest Airlines listed on the NYSE on June 8, 1971, and is traded under the code name “LUV”.
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