Competitive RisksSouthwest's push to build premium revenue risks colliding with network airline competition and discount airlines, creating competition risk for core customers.
Market PerformanceGoing forward, it could be much more important to see how Southwest’s RASM holds up, in light of potential US consumer uncertainties and competition.
Profitability ConcernsThe new target multiple reflects a nearly 5% discount to Southwest's pre-pandemic historical average, indicating lower profitability.