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Southwest Airlines (LUV)
NYSE:LUV
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Southwest Airlines (LUV) Price & Analysis

7,870 Followers

LUV Stock Chart & Stats

$42.70
-$0.31(-0.94%)
At close: 4:00 PM EST
$42.70
-$0.31(-0.94%)

Bulls Say, Bears Say

Bulls Say
Revenue And Unit-revenue StrengthSustained unit-revenue gains and record quarterly revenue indicate durable pricing power and demand resilience across the network. Over a 2–6 month horizon, stronger RASM supports margin recovery, funds reinvestment, and reduces reliance on cyclical demand spikes for profitability.
Improved Leverage And Balance-sheet FlexibilityMaterial deleveraging strengthens financial resilience and optionality. Lower leverage improves access to capital, allows opportunistic refinancing, and supports fleet investment and buybacks without imperiling liquidity, making the company better positioned for cyclical downturns.
Ancillary Revenue And Product UpsellRapid expansion of ancillary sales and loyalty enrollments diversifies revenue and raises customer lifetime value. Durable ancillary adoption reduces reliance on base fares, improves unit economics, and supports steadier revenue per passenger as product enhancements scale across the fleet.
Bears Say
Negative Free Cash Flow And Weak Cash ConversionPersistent negative free cash flow despite positive operating cash flow signals capital intensity and reinvestment needs that outpace cash generation. Over months this constrains discretionary spending, limits rapid deleveraging, and reduces flexibility to fund buybacks or weather revenue shocks without borrowing.
Thin Profit MarginsVery narrow net margins leave little buffer for cost shocks or slower demand. In a capital- and fuel-sensitive industry, margin compression can quickly reverse profitability; sustaining higher margins depends on persistent cost control and continued unit-revenue strength.
Fuel Volatility Driving Guidance UncertaintyFuel-price swings are a structural industry risk that materially affect operating costs and cash flow. Large, rapid fuel moves can erase margin gains and force network or capacity changes; management's reluctance to reaffirm guidance reflects meaningful earnings sensitivity to this external factor.

Southwest Airlines News

LUV FAQ

What was Southwest Airlines’s price range in the past 12 months?
Southwest Airlines lowest stock price was $28.98 and its highest was $55.11 in the past 12 months.
    What is Southwest Airlines’s market cap?
    Southwest Airlines’s market cap is $24.67B.
      When is Southwest Airlines’s upcoming earnings report date?
      Southwest Airlines’s upcoming earnings report date is Jul 22, 2026 which is in 20 days.
        How were Southwest Airlines’s earnings last quarter?
        Southwest Airlines released its earnings results on Apr 22, 2026. The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.473 by -$0.023.
          Is Southwest Airlines overvalued?
          According to Wall Street analysts Southwest Airlines’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Southwest Airlines pay dividends?
            Southwest Airlines pays a Quarterly dividend of $0.18 which represents an annual dividend yield of 1.73%. See more information on Southwest Airlines dividends here
              What is Southwest Airlines’s EPS estimate?
              Southwest Airlines’s EPS estimate is 0.48.
                How many shares outstanding does Southwest Airlines have?
                Southwest Airlines has 488,773,700 shares outstanding.
                  What happened to Southwest Airlines’s price movement after its last earnings report?
                  Southwest Airlines reported an EPS of $0.45 in its last earnings report, missing expectations of $0.473. Following the earnings report the stock price went down -4.066%.
                    Which hedge fund is a major shareholder of Southwest Airlines?
                    Currently, no hedge funds are holding shares in LUV
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Southwest Airlines

                      Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of Puerto Rico, along with 10 international countries close by. These international destinations include Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. To enhance the passenger journey, Southwest provides in-flight entertainment and internet access on its Wi-Fi-enabled planes. The airline also runs the Rapid Rewards loyalty program, enabling members to accumulate points proportional to the money spent on Southwest's base fares. For customer convenience in travel planning, the company offers a range of digital tools, including its official websites and mobile applications, as well as SWABIZ, a dedicated online booking platform for business clients. Additional services available include EarlyBird Check-In, preferred boarding options, and transportation for pets and unaccompanied minors. The company was founded in 1967 and its corporate headquarters are situated in Dallas, Texas.

                      Southwest Airlines (LUV) Earnings & Revenues

                      LUV Earnings Call

                      Q1 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call emphasized substantial execution wins: a clear financial turnaround (positive EPS vs. loss last year), record revenues and unit-revenue strength, strong cash generation, rapid customer adoption of new products, margin expansion, and continued operational reliability. Those positive developments are tempered by a meaningful and volatile fuel cost spike that materially pressures margins and prompted management not to revise full-year EPS guidance; there are also investor questions about certain accounting changes (ATL) and ongoing network adjustments. On balance, the transformation appears to be working and driving durable improvements, but short‑term outlook uncertainty is elevated because of fuel.View all LUV earnings summaries

                      LUV Revenue Breakdown

                      90.99%90.99%0.61%8.40%
                      90.99% Passenger
                      0.61% Freight
                      8.40% Other
                      tipranks

                      LUV Stock 12 Month Forecast

                      Average Price Target

                      $50.83
                      ▲(19.04% Upside)
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                      Ownership Overview

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                      23.55% Other Institutional Investors
                      14.42% Public Companies and Individual Investors
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