Comparison
Southwest vs Delta Stock: Airline Comparison
Compare Southwest and Delta stock, route networks, business models, and which airline is the better investment.
Southwest vs Delta Overview
Southwest pioneered low-cost travel with point-to-point service while Delta operates as a premium network carrier with global reach. They represent different airline business models.
Company Comparison
| Metric |
Southwest |
Delta |
| Market Cap |
~$20B |
~$35B |
| Revenue (2025) |
~$28B |
~$60B |
| Fleet Size |
~800 |
~1,300 |
| Destinations |
~120 |
~300+ |
| Founded |
1967 |
1924 |
Business Model
Southwest
- Low-cost carrier (LCC)
- Point-to-point network
- Single aircraft type (Boeing 737)
- No first class or assigned seats
- Free checked bags
- Domestic focus
Delta
- Legacy/network carrier
- Hub-and-spoke network
- Multiple aircraft types
- Premium cabins
- International partnerships
- Diversified revenue
Fleet Comparison
| Factor |
Southwest |
Delta |
| Aircraft Types |
1 (737) |
15+ |
| Average Age |
~12 years |
~15 years |
| Advantage |
Cost efficiency |
Flexibility |
Financial Comparison
| Metric |
Southwest |
Delta |
| Revenue |
~$28B |
~$60B |
| Operating Margin |
~10% |
~12% |
| Net Margin |
~7% |
~8% |
| Load Factor |
~84% |
~86% |
| CASM (ex-fuel) |
Lower |
Higher |
Revenue Breakdown
Southwest
| Source |
Revenue % |
| Passenger |
~95% |
| Cargo/Other |
~5% |
Delta
| Source |
Revenue % |
| Passenger |
~85% |
| Cargo |
~3% |
| Loyalty/Credit Card |
~8% |
| Other |
~4% |
Route Network
| Factor |
Southwest |
Delta |
| Domestic Share |
~17% |
~18% |
| International |
Limited (Caribbean, Mexico) |
Extensive |
| Hubs |
None (focus cities) |
ATL, MSP, DTW, SLC |
| Business Travel |
Growing |
Strong |
Loyalty Programs
| Program |
Southwest |
Delta |
| Name |
Rapid Rewards |
SkyMiles |
| Credit Card Revenue |
Growing |
~$7B+ annually |
| Valuation |
Part of company |
Could separate |
Valuation
| Metric |
Southwest |
Delta |
| P/E Ratio |
~12x |
~8x |
| P/S Ratio |
~0.7x |
~0.6x |
| EV/EBITDA |
~5x |
~4.5x |
| Dividend Yield |
~2% |
~1% |
Both trade at low multiples typical for airlines.
Competitive Advantages
Southwest
- Low-cost structure
- Strong culture and service reputation
- No change fees (industry first)
- Simplicity (one aircraft type)
- Strong balance sheet
Delta
- Premium positioning
- International network
- Sky Club lounges
- Refinery ownership (cost hedge)
- Strongest brand among legacies
Challenges
| Challenge |
Southwest |
Delta |
| Technology update |
Needed |
Ongoing |
| Labor costs |
Rising |
Rising |
| Competition |
ULCC pressure |
International competition |
| Fuel volatility |
High |
Medium (refinery) |
Recent Developments
Southwest
- Technology modernization after 2022 meltdown
- Considering assigned seating
- Premium economy product
- Red-eye flights
Delta
- Premium seat investment
- International route expansion
- Sustainability initiatives
- Partner investments (LATAM, Korean Air)
Which Stock to Buy?
| Preference |
Choose |
| Low-cost model |
Southwest |
| Premium carrier |
Delta |
| International exposure |
Delta |
| Simpler operations |
Southwest |
| Dividend consistency |
Southwest |
| Lower valuation |
Delta |
Both are quality airlines with different strengths in a challenging industry.
Stock data as of early 2026. This comparison is for informational purposes only and does not constitute investment advice.