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Southwest Airlines Lowers 2025 EBIT Expectations Amid Challenges

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Southwest Airlines Lowers 2025 EBIT Expectations Amid Challenges

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Southwest Airlines ( (LUV) ) has shared an update.

Southwest Airlines has revised its expectations for full-year 2025 earnings before interest and taxes (EBIT), excluding special items, to approximately $500 million, down from the previous range of $600 million to $800 million. This adjustment is due to decreased revenue from a government shutdown and increased fuel prices, although bookings have since returned to expected levels.

The most recent analyst rating on (LUV) stock is a Hold with a $38.00 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’ stock score is driven by strong earnings call highlights and positive technical indicators, suggesting a recovery trajectory. However, high valuation metrics and ongoing cash flow challenges weigh on the score. The company’s strategic initiatives and operational improvements provide a positive outlook, but profitability and cash management need attention.

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

More about Southwest Airlines

Southwest Airlines Co. operates in the airline industry, providing air transportation services. It is known for its low-cost carrier model, focusing on domestic travel within the United States.

Average Trading Volume: 9,083,692

Technical Sentiment Signal: Buy

Current Market Cap: $18.52B

For an in-depth examination of LUV stock, go to TipRanks’ Overview page.

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