Southwest Airlines (LUV) FY2018 results: revenue $22.0 billion, up 3.8% on the year
Southwest Airlines Co. (LUV) reported revenue of $22.0 billion for fiscal 2018, the year ended 31 December 2018, up 3.8% on the year before. Net income was $2.5 billion, down 26.6%, and diluted earnings per share $4.29. The figures are the company's own, from the 10-K it filed with the SEC on 5 February 2019.
Revenue
$22.0 billion
+3.8% on the year
FY2011FY2018
Operating margin
14.6%
16.1% a year earlier
FY2011FY2018
Net income
$2.5 billion
-26.6% on the year
FY2011FY2018
Diluted EPS
$4.29
-23.0% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
21,965
21,171
20,289
+3.8%
Operating income
3,206
3,407
3,522
-5.9%
Operating margin
14.6%
16.1%
17.4%
Interest expense
131
114
122
+14.9%
Pre-tax income
3,164
3,265
3,450
-3.1%
Income tax
699
-92.0
1,267
Effective tax rate
22.1%
-2.8%
36.7%
Net income
2,465
3,357
2,183
-26.6%
Net margin
11.2%
15.9%
10.8%
Diluted EPS
$4.29
$5.57
$3.45
-23.0%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
4,893
3,929
4,293
+24.5%
Capital expenditure
1,922
2,123
2,038
-9.5%
Free cash flow
2,971
1,806
2,255
+64.5%
Free cash flow margin
13.5%
8.5%
11.1%
Cash from investing
-2,038
-2,408
-2,272
Cash from financing
-2,496
-1,706
-1,924
Depreciation and amortisation
1,201
1,218
1,221
-1.4%
Share-based compensation
46.0
37.0
33.0
+24.3%
Buybacks
2,000
1,600
1,750
+25.0%
Dividends paid
332
274
222
+21.2%
Dividend per share
$0.60
$0.47
$0.38
+27.4%
Diluted shares, weighted
574m
603m
633m
-4.8%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
9,853
9,641
7,784
+2.2%
Debt
3,377
3,668
3,387
-7.9%
Operating lease liabilities
0.0
n/a
n/a
Other liabilities
13,013
11,801
12,115
+10.3%
Total liabilities and equity
26,243
25,110
23,286
+4.5%
Fixed assets
19,525
18,539
17,044
+5.3%
Goodwill
970
970
970
0.0%
Intangible assets
400
413
426
-3.1%
Investments
1,835
1,778
1,625
+3.2%
Cash and equivalents
1,854
1,495
1,680
+24.0%
Other assets
1,659
1,915
1,541
-13.4%
Total assets
26,243
25,110
23,286
+4.5%
10-K for the year ended 31 December 2018, filed 5 February 2019: the filing.