Southwest Airlines Co (FRA:SWN) Total Payout Ratio: 4.22 (As of Jul. 15, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:SWN Southwest Airlines Co FRA:SWN
82 GF Score
Price €41.67
GF Value €36.66
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Southwest Airlines Co Total Payout Ratio?

Southwest Airlines Co FRA:SWN +0.80% 82 Total Payout Ratio is 4.22 as of Jul. 15, 2026. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €36.66 (Modestly Overvalued). The stock has 3 warning signs investors should review.

Total Payout Ratio is the percent a company has paid to its shareholders through net repurchase of shares and dividends based on its Net Income.

Southwest Airlines Co's current Total Payout Ratio is 4.22.


Southwest Airlines Co Total Payout Ratio Related Terms


Southwest Airlines Co Total Payout Ratio Historical Data

* Premium members only.

The historical data trend for Southwest Airlines Co's Total Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Southwest Airlines Co Total Payout Ratio Chart

Southwest Airlines Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Total Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.92 1.46 6.69

Southwest Airlines Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Total Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.75 7.53 8.13 0.16 5.92

FRA:SWN vs AAL, UAL, CPA: Total Payout Ratio Comparison

For the Airlines subindustry, Southwest Airlines Co's Total Payout Ratio, along with its competitors' market caps and Total Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Southwest Airlines Co Total Payout Ratio vs Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Total Payout Ratio distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Total Payout Ratio falls into.


FRA:SWN
82GF Score
Southwest Airlines Co FRA:SWN
Total Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Southwest Airlines Co Total Payout Ratio Calculation

Total Payout Ratio is a measurement showing the proportion of earnings a company pays shareholders in the form of dividends and net stock repurchases.

Southwest Airlines Co's Total Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Total Payout Ratio=- (Repurchase of Stock + Issuance of Stock + Cash Flow for Dividends) / Net Income
=- (-2177.7 + 0 + -340.746) / 376.614
=6.69

Southwest Airlines Co's Total Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Total Payout Ratio=- (Repurchase of Stock + Issuance of Stock + Cash Flow for Dividends) / Net Income
=- (-1081.25 + 0 + -80.445) / 196.355
=5.92

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Total Payout Ratio →
What does a Total Payout Ratio of 4.22 mean?
Southwest Airlines Co (FRA:SWN) has a Total Payout Ratio of 4.22 as of Jul. 15, 2026. Total Payout Ratio is the percent a company has paid to its shareholders through net repurchase of shares and dividends based on its Net Income. View historical data on Southwest Airlines Co and its competitors.
Is Southwest Airlines Co's Total Payout Ratio too high?
Southwest Airlines Co's current Total Payout Ratio is 4.22. Overall, Southwest Airlines Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Total Payout Ratio compare to AAL and UAL?
Southwest Airlines Co's Total Payout Ratio of 4.22 can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Total Payout Ratio for a Transportation company?
A good Total Payout Ratio depends on the Transportation industry context. However, Total Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Total Payout Ratio mean?
A high Total Payout Ratio can signal that a stock is expensive relative to its fundamentals. Total Payout Ratio is the percent a company has paid to its shareholders through net repurchase of shares and dividends based on its Net Income. View historical data on Southwest Airlines Co and its competitors. Southwest Airlines Co's current Total Payout Ratio is 4.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (FRA:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €36.66, compared to a current price of €41.67 — trading 13.7% above its estimated fair value. The current Total Payout Ratio is 4.22. Southwest Airlines Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Total Payout Ratio calculated?
Total Payout Ratio is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Total Payout Ratio is 4.22 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Southwest Airlines Co (FRA:SWN) Overvalued in 2026?

Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued. The current stock price of €41.67 is trading 13.7% above its estimated GF Value™ of €36.66. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for FRA:SWN:

  • Total Payout Ratio: 4.22
  • GF Value™: €36.66 vs. price of €41.67 (13.7% above fair value)
  • GF Score™: 82/100 with 3 warning signs

No single metric tells the full story. See the FRA:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Southwest Airlines Co Business Description

Address P.O. Box 36611, Dallas, TX, USA, 75235-1611
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
82GF Score

Get the complete analysis for FRA:SWN

Total Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€41.67
Price
€36.66
GF Value