Andrew Didora, an analyst from Bank of America Securities, maintained the Sell rating on Southwest Airlines. The associated price target remains the same with $28.00.
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Andrew Didora has given his Sell rating due to a combination of factors affecting Southwest Airlines’ financial outlook. Primarily, the company’s earnings have been heavily influenced by cost management rather than revenue growth, which raises concerns about the sustainability of its financial performance. The third quarter of 2025 showed earnings per share that exceeded expectations, but this was largely due to better-than-expected unit cost growth rather than significant revenue increases.
Furthermore, the revenue outlook for the fourth quarter of 2025 is not substantially different from consensus expectations, and it is lower than what Southwest had projected earlier in the year. Additionally, Didora notes that the company’s fuel cost assumptions appear optimistic given current market conditions, which could impact future earnings. These factors, combined with the need for clarification on how Southwest plans to achieve its projected revenue growth, contribute to the underperform rating and a price objective that is below the current trading price.
LUV’s price has also changed moderately for the past six months – from $24.750 to $33.760, which is a 36.40% increase.