There was once a Dilbert strip that featured the Pointy-Haired Boss introducing the new director of marketing, who was “…an angry demon of some sort.” His job was to make prices confusing to customers. In the next panel, Dilbert’s mom was out shopping for software, when she asked a store clerk about the price of a product, which was listed as “it depends.” Apparently, airline Southwest Airlines (LUV) decided that this was a fine idea, because that is what its new assigned-seat pricing is. Investors did not appreciate the notion of their investment imitating Dilbert, and thus sent shares into free-fall, down over 4.5% in Friday morning’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The new seating schedule kicked in earlier this week, reports note, but for flights boarding January 27, 2026. And indeed, the price tag is “it depends,” at least until you start supplying a lot of information about which flight you want and when. The price will ultimately depend on the route desired, when you will take the flight, and where you will sit in the plane.
One example to consider is for a round-trip ticket in “Choice” seating—the second-least-expensive class of seating—from Denver to Orlando, leaving February 14 to return February 21. That flight ran $692, reports noted. Further fees kicked in for window or aisle seats in certain rows. However, there will be some cases where the fees are exempt, particularly for those with elite frequent-flyer status or those who have Southwest Airlines credit cards.
But At Least You Can Go Somewhere Warm
While most people are likely figuring out how to get out of warmth right now, they will be wanting back into it soon enough. And to that end, Southwest will have some new destination service starting in February. Specifically, there will be new flights from Baltimore Washington International Thurgood Marshall Airport to the United States Virgin Islands.
Southwest runs several flights to Caribbean destinations from San Juan to Punta Cana as it is, but throwing in a few more can hardly hurt. Certainly, by the time winter comes back around in just a few months, there will undoubtedly be customers interested in flying wherever it is that is not covered in a layer of frozen water.
Is LUV Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on LUV stock based on three Buys, six Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 23.47% rally in its share price over the past year, the average LUV price target of $31.25 per share implies 5.01% upside potential.
