LTM vs. LUV: LATAM Airlines vs. Southwest Airlines Stock Comparison

November 11, 2026

How do LATAM Airlines (LTM) and Southwest Airlines (LUV) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

LATAM Airlines (LTM) and Southwest Airlines (LUV) are both classified in the Passenger Airlines sub-industry within the broader Passenger Airlines industry, placing them in the closest GICS peer bucket.

Southwest Airlines (LUV) carries decades of public-market history since January 2, 1980, while LATAM Airlines (LTM) listed on July 25, 2024 — long-window comparisons have far more historical data on the LUV side.

Southwest Airlines (LUV) trades as ordinary local shares, while LATAM Airlines (LTM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Profile Item	LTM	LUV
Name	LATAM Airlines Group S.A. ADR	Southwest Airlines Co.
Country/Region	Chile	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Transportation	Transportation
GICS Industry	Passenger Airlines	Passenger Airlines
GICS Sub-Industry	Passenger Airlines	Passenger Airlines
Market Capitalization	13.60 billion USD	21.76 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	July 25, 2024	January 2, 1980
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

LTM

LUV

GSPC

LATAM Airlines (LTM) vs. Southwest Airlines (LUV), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for LATAM Airlines (LTM) and Southwest Airlines (LUV). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for LATAM Airlines (LTM) and Southwest Airlines (LUV). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Total Return (1Y)	12.94%	44.35%
Total Return (3Y, Annualized)	--	28.08%
Total Return (5Y, Annualized)	--	-0.31%

Risk Profile

Drawdown History

LTM

LUV

GSPC

LATAM Airlines (LTM) vs. Southwest Airlines (LUV), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for LATAM Airlines (LTM) and Southwest Airlines (LUV). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Volatility (1Y, Annualized)	45.42%	44.46%
Beta (5Y)	0.64	1.19
Max Drawdown (5Y)	-37.94%	-55.39%
Avg. Volume (3M)	862.11K	5.76M

Risk-Adjusted Performance

Risk-Return Positioning

LTM and LUV are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Sharpe Ratio (1Y)	0.19	0.90
Sortino Ratio (1Y)	0.30	1.51

Profitability

ROE (TTM)

LATAM Airlines (LTM) at 98.02% clears its industry range for ROE, a sharper capital-efficiency signal than Southwest Airlines (LUV) at 13.94%, which is closer to a typical peer reading.

LTM

Transportation industry group

98.02%

LTM: 98.02%
Max: 45.08%
Q3: 22.02%
Median: 13.94%
Q1: 2.89%
Min: -10.45%

LUV

Transportation industry group

13.94%

Max: 45.08%
Q3: 22.02%
LUV: 13.94%
Median: 13.94%
Q1: 2.89%
Min: -10.45%

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Both LATAM Airlines (LTM) at 9.82% and Southwest Airlines (LUV) at 3.34% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

LTM

Transportation industry group

9.82%

Max: 50.36%
Q3: 21.18%
LTM: 9.82%
Median: 5.58%
Q1: 1.55%
Min: -11.37%

LUV

Transportation industry group

3.34%

Max: 50.36%
Q3: 21.18%
Median: 5.58%
LUV: 3.34%
Q1: 1.55%
Min: -11.37%

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

LATAM Airlines (LTM) at 13.14% runs core operations around its industry’s norm, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.

LTM

Transportation industry group

13.14%

Max: 59.18%
Q3: 29.30%
LTM: 13.14%
Median: 11.50%
Q1: 4.62%
Min: -8.91%

LUV

Transportation industry group

4.49%

Max: 59.18%
Q3: 29.30%
Median: 11.50%
Q1: 4.62%
LUV: 4.49%
Min: -8.91%

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
ROE (TTM)	98.02%	13.94%
ROA (TTM)	7.59%	3.05%
Net Margin (TTM)	9.82%	3.34%
Operating Margin (TTM)	13.14%	4.49%
Gross Margin (TTM)	24.99%	22.14%

Growth

Revenue Growth

LATAM Airlines (LTM) at 11.16% sits in the top revenue growth quartile, while Southwest Airlines (LUV) at 2.11% is closer to the peer norm — faster top-line expansion for LTM.

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their Revenue Growth across different time periods.

EPS Growth

LATAM Airlines (LTM) at 53.28% sits in the top EPS growth quartile, while Southwest Airlines (LUV) at 3.95% is closer to the peer norm — faster per-share earnings growth for LTM.

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Revenue Growth (YoY)	11.16%	2.11%
Revenue Growth (3Y CAGR)	15.07%	5.63%
EPS Growth (YoY)	53.28%	3.95%
EPS Growth (3Y CAGR)	-2.05%	-3.16%

Financial Strength

Current Ratio (MRQ)

Both LATAM Airlines (LTM) at 0.68 and Southwest Airlines (LUV) at 0.47 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

LTM

Transportation industry group

0.68

Max: 2.58
Q3: 1.62
Median: 1.16
Q1: 0.78
LTM: 0.68
Min: 0.22

LUV

Transportation industry group

0.47

Max: 2.58
Q3: 1.62
Median: 1.16
Q1: 0.78
LUV: 0.47
Min: 0.22

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their current ratio against the Transportation industry group benchmark.

Debt / Equity (MRQ)

Southwest Airlines (LUV) at 0.94 is near its industry mid-range for debt-to-equity ratio, while LATAM Airlines (LTM) at 4.18 sits above its benchmark range, pointing to a heavier debt load relative to equity.

LTM

Transportation industry group

4.18

LTM: 4.18
Max: 2.75
Q3: 1.37
Median: 0.78
Q1: 0.35
Min: 0.00

LUV

Transportation industry group

0.94

Max: 2.75
Q3: 1.37
LUV: 0.94
Median: 0.78
Q1: 0.35
Min: 0.00

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their debt-to-equity ratio against the Transportation industry group benchmark.

Financial Strength Metrics

Financial strength metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Current Ratio (MRQ)	0.68	0.47
Debt / Equity (MRQ)	4.18	0.94
Net Debt / EBITDA	1.75	1.21

Dividends

Dividend Yield (TTM)

Both LATAM Airlines (LTM) at 0.00% and Southwest Airlines (LUV) at 1.62% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

LTM

Transportation industry group

0.00%

Max: 4.68%
Q3: 1.99%
Median: 0.74%
LTM: 0.00%
Q1: 0.00%
Min: 0.00%

LUV

Transportation industry group

1.62%

Max: 4.68%
Q3: 1.99%
LUV: 1.62%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

Both LATAM Airlines (LTM) at 27.08% and Southwest Airlines (LUV) at 35.12% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

LTM

Transportation industry group

27.08%

Max: 100.89%
Q3: 41.68%
LTM: 27.08%
Median: 20.43%
Q1: 0.00%
Min: 0.00%

LUV

Transportation industry group

35.12%

Max: 100.89%
Q3: 41.68%
LUV: 35.12%
Median: 20.43%
Q1: 0.00%
Min: 0.00%

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
Dividend Yield (TTM)	0.00%	1.62%
Dividend Payout Ratio (TTM)	27.08%	35.12%

Valuation

P/E Ratio (TTM)

LATAM Airlines (LTM) at 8.44 sits in the cheaper P/E ratio quartile, while Southwest Airlines (LUV) at 21.68 is closer to its industry’s usual earnings multiple — a discount for LTM, though growth and earnings durability still matter.

LTM

Transportation industry group

8.44

Max: 46.76
Q3: 30.87
Median: 20.58
Q1: 10.44
LTM: 8.44
Min: 0.00

LUV

Transportation industry group

21.68

Max: 46.76
Q3: 30.87
LUV: 21.68
Median: 20.58
Q1: 10.44
Min: 0.00

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their P/E ratio against the Transportation industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both LATAM Airlines (LTM) at 0.82 and Southwest Airlines (LUV) at 0.69 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

LTM

Transportation industry group

0.82

Max: 4.35
Q3: 2.07
Median: 0.93
LTM: 0.82
Q1: 0.53
Min: 0.04

LUV

Transportation industry group

0.69

Max: 4.35
Q3: 2.07
Median: 0.93
LUV: 0.69
Q1: 0.53
Min: 0.04

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their P/S ratio against the Transportation industry group benchmark.

P/B Ratio (MRQ)

Southwest Airlines (LUV) at 2.97 is valued about in line with its industry on P/B ratio, while LATAM Airlines (LTM) at 5.96 carries an above-peer premium to book — LTM is pricier on assets.

LTM

Transportation industry group

5.96

Max: 6.29
LTM: 5.96
Q3: 3.39
Median: 1.90
Q1: 1.03
Min: -2.07

LUV

Transportation industry group

2.97

Max: 6.29
Q3: 3.39
LUV: 2.97
Median: 1.90
Q1: 1.03
Min: -2.07

LATAM Airlines (LTM) vs. Southwest Airlines (LUV): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for LATAM Airlines (LTM) and Southwest Airlines (LUV)
Metric	LTM	LUV
P/E Ratio (TTM)	8.44	21.68
P/S Ratio (TTM)	0.82	0.69
P/B Ratio (MRQ)	5.96	2.97
Free Cash Flow Yield (TTM)	11.80%	-2.82%