Southwest Airlines Announces $2 Billion Share Buyback

Southwest Airlines ( (LUV) ) has issued an announcement.

On July 23, 2025, Southwest Airlines announced a new $2.0 billion share repurchase program, reflecting confidence in its transformational plan and strong management execution. The company reported a net income of $213 million for the second quarter of 2025 and highlighted several initiatives, including the introduction of bag fees and a basic economy product, which exceeded financial expectations. Despite a decrease in passenger and operating revenues, the company remains optimistic about future growth, supported by recent improvements in industry demand and its strategic initiatives.

The most recent analyst rating on (LUV) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Southwest Airlines stock, see the LUV Stock Forecast page.

Spark’s Take on LUV Stock

According to Spark, TipRanks’ AI Analyst, LUV is a Neutral.

Southwest Airlines exhibits strong revenue growth and operational improvements, reflected in the financial and earnings call analyses. However, technical indicators suggest potential overvaluation, and macroeconomic uncertainties pose risks. The stock’s high P/E ratio and recent net loss further temper its attractiveness. Overall, the stock shows promise but requires careful monitoring of market conditions and strategic execution.

To see Spark’s full report on LUV stock, click here.

More about Southwest Airlines

Southwest Airlines Co. is a major American airline headquartered in Dallas, Texas. It primarily operates in the commercial airline industry, offering passenger air travel services. The company is known for its low-cost carrier model and focuses on domestic flights within the United States, with some international destinations.

Average Trading Volume: 11,799,127

Technical Sentiment Signal: Buy

Current Market Cap: $21.18B

Learn more about LUV stock on TipRanks’ Stock Analysis page.