AAL vs. LUV
AAL (American Airlines Group Inc.) and LUV (Southwest Airlines Co.) are both stocks. Both operate in the Airlines industry within the Industrials sector. Over the past 10 years, AAL returned -7.19%/yr vs 3.64%/yr for LUV. Their 0.66 correlation means they have sometimes moved together and sometimes differently.
Performance
AAL vs. LUV - Performance Comparison
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Returns By Period
In the year-to-date period, AAL achieves a -0.39% return, which is significantly lower than LUV's 9.75% return. Over the past 10 years, AAL has underperformed LUV with an annualized return of -7.19%, while LUV has yielded a comparatively higher 3.64% annualized return.
AAL
- 1D
- -1.04%
- 1M
- -14.79%
- 6M
- 14.81%
- YTD
- -0.39%
- 1Y
- 38.44%
- 3Y*
- -2.01%
- 5Y*
- -5.61%
- 10Y*
- -7.19%
- ALL TIME*
- -1.25%
LUV
- 1D
- -1.38%
- 1M
- -10.51%
- 6M
- -4.54%
- YTD
- 9.75%
- 1Y
- 53.74%
- 3Y*
- 12.81%
- 5Y*
- -0.71%
- 10Y*
- 3.64%
- ALL TIME*
- 12.70%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.35B | $1.92B | $1.69B | |
| $275.82M | $262.21M | $284.21M |
AAL vs. LUV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAL American Airlines Group Inc. | -0.39% | -12.05% | 26.86% | 8.02% | -29.18% | 13.89% | -44.81% | -9.57% | -37.69% | 12.40% |
LUV Southwest Airlines Co. | 9.75% | 25.62% | 19.11% | -11.82% | -21.41% | -8.09% | -13.32% | 17.72% | -28.21% | 32.40% |
Correlation
The correlation between AAL and LUV is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.77 |
Correlation (3Y) Balances recent behavior with more history. | 0.67 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.73 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.72 |
Correlation (All Time) Calculated using the full available price history since Sep 27, 2005 | 0.66 |
The correlation between AAL and LUV shifts across timeframes, from 0.66 (all time) to 0.77 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
AAL:
$10.11B
LUV:
$22.00B
AAL:
-$0.49
LUV:
$1.63
AAL:
0.17
LUV:
0.77
AAL:
$58.34B
LUV:
$30.07B
AAL:
$12.26B
LUV:
$7.43B
AAL:
$3.34B
LUV:
$2.80B
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Return for Risk
AAL vs. LUV — Risk / Return Rank
AAL
LUV
AAL vs. LUV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Airlines Group Inc. (AAL) and Southwest Airlines Co. (LUV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AAL | LUV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.43 | ||
| Sortino ratioReturn per unit of downside risk | -0.57 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.22 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.88 | 1.44 | -0.56 |
| Martin ratioReturn relative to average drawdown | 2.02 | 3.21 | -1.19 |
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Drawdowns
AAL vs. LUV - Drawdown Comparison
The maximum AAL drawdown since its inception was -97.20%, which is greater than LUV's maximum drawdown of -78.25%. Use the drawdown chart below to compare losses from any high point for AAL and LUV.
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Drawdown Indicators
| AAL | LUV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -97.20% | -78.25% | -18.95% |
Max Drawdown (1Y)Largest decline over 1 year | -37.39% | -33.49% | -3.90% |
Max Drawdown (3Y)Largest decline over 3 years | -51.39% | -33.93% | -17.46% |
Max Drawdown (5Y)Largest decline over 5 years | -59.25% | -58.75% | -0.50% |
Max Drawdown (10Y)Largest decline over 10 years | -84.14% | -64.76% | -19.38% |
Current DrawdownCurrent decline from peak | -74.27% | -24.35% | -49.92% |
Average DrawdownAverage peak-to-trough decline | -60.51% | -29.10% | -31.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.29% | 15.03% | +1.26% |
Volatility
AAL vs. LUV - Volatility Comparison
American Airlines Group Inc. (AAL) has a higher volatility of 16.21% compared to Southwest Airlines Co. (LUV) at 10.73%. This indicates that AAL's price experiences larger fluctuations and is considered to be riskier than LUV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAL | LUV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 16.21% | 10.73% | +5.48% |
Volatility (6M)Calculated over the trailing 6-month period | 37.46% | 32.19% | +5.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 48.98% | 43.88% | +5.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 48.53% | 38.50% | +10.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 52.96% | 37.60% | +15.36% |
Dividends
AAL vs. LUV - Dividend Comparison
AAL has not paid dividends to shareholders, while LUV's dividend yield for the trailing twelve months is around 1.60%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAL American Airlines Group Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.63% | 1.39% | 1.25% | 0.77% | 0.86% | 0.94% |
LUV Southwest Airlines Co. | 1.60% | 1.74% | 2.14% | 3.12% | 0.00% | 0.00% | 0.39% | 1.30% | 1.30% | 0.73% | 0.75% | 0.66% |
Financials
AAL vs. LUV - Financials Comparison
This section allows you to compare key financial metrics between American Airlines Group Inc. and Southwest Airlines Co.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
AAL vs. LUV - Profitability Comparison
AAL - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, American Airlines Group Inc. reported a gross profit of 3.47B and revenue of 16.74B. Therefore, the gross margin over that period was 20.7%.
LUV - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported a gross profit of 4.03B and revenue of 8.43B. Therefore, the gross margin over that period was 47.8%.
AAL - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, American Airlines Group Inc. reported an operating income of 446.00M and revenue of 16.74B, resulting in an operating margin of 2.7%.
LUV - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported an operating income of 285.00M and revenue of 8.43B, resulting in an operating margin of 3.4%.
AAL - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, American Airlines Group Inc. reported a net income of 71.00M and revenue of 16.74B, resulting in a net margin of 0.4%.
LUV - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported a net income of 233.00M and revenue of 8.43B, resulting in a net margin of 2.8%.
Frequently Asked Questions
AAL and LUV have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAL has higher volatility (16.21%) compared to LUV (10.73%). In terms of maximum drawdown, AAL dropped -97.20% vs LUV's -78.25%.
LUV currently has the higher Sharpe Ratio (1.10 vs 0.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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