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

7,879 Followers

LUV Stock Chart & Stats

$40.82
$0.30(0.67%)
At close: 4:00 PM EDT
$40.82
$0.30(0.67%)

Bulls Say, Bears Say

Bulls Say
Revenue And Unit-Revenue GrowthRecord revenue and 20.1% unit-revenue growth indicate stronger pricing, demand, and network monetization. If sustained, this commercial improvement can support higher earnings power and give Southwest greater flexibility to fund customer investments and operational improvements.
Loyalty And Co-Brand ExpansionA larger loyalty base and accelerating co-brand card acquisition strengthen Southwest’s customer retention and partner economics. Loyalty-point sales and repeat engagement can diversify revenue beyond fares, improve marketing efficiency, and provide a durable commercial advantage.
Operating Cash Flow And LiquidityStrong operating cash generation and liquidity above management’s approximate $4.5 billion target improve resilience and financial flexibility. These resources support operations, strategic investments, and the ability to manage cyclical airline demand or cost volatility without immediate external funding.
Bears Say
Thin Profit MarginsThin margins leave Southwest’s earnings highly sensitive to changes in fares, fuel, labor, and maintenance costs. Even with recent improvement, profitability remains below earlier-cycle levels, limiting the buffer available to absorb operational disruption or weaker pricing over coming quarters.
Negative Free Cash FlowPersistent negative free cash flow shows that operating cash has not covered reinvestment and other cash demands consistently. This reduces internally funded capacity for fleet, technology, and network initiatives, and could increase reliance on financing if the pattern continues.
Fuel And Cost PressureFuel inflation and rising ex-fuel unit costs threaten the durability of Southwest’s margin recovery. Management’s lower full-year EPS framework reflects this pressure, while planned cost growth could offset part of the benefit from stronger unit revenue and constrain earnings conversion.

Southwest Airlines News

LUV FAQ

What was Southwest Airlines’s price range in the past 12 months?
Southwest Airlines lowest stock price was $29.26 and its highest was $55.11 in the past 12 months.
    What is Southwest Airlines’s market cap?
    Southwest Airlines’s market cap is $18.93B.
      When is Southwest Airlines’s upcoming earnings report date?
      Southwest Airlines’s upcoming earnings report date is Oct 21, 2026 which is in 39 days.
        How were Southwest Airlines’s earnings last quarter?
        Southwest Airlines released its earnings results on Jul 22, 2026. The company reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.43.
          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 1.83%. See more information on Southwest Airlines dividends here
              What is Southwest Airlines’s EPS estimate?
              Southwest Airlines’s EPS estimate is 0.6.
                How many shares outstanding does Southwest Airlines have?
                Southwest Airlines has 489,208,200 shares outstanding.
                  What happened to Southwest Airlines’s price movement after its last earnings report?
                  Southwest Airlines reported an EPS of $0.94 in its last earnings report, beating expectations of $0.51. Following the earnings report the stock price went down -6.189%.
                    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

                      Q2 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call presented a strong operational and commercial turnaround: record revenues, double-digit unit revenue growth (20.1% YoY), wide engagement gains across loyalty and co-brand metrics, margin expansion to 6.7% despite nearly $900 million higher fuel expense in the quarter, and robust cash generation and liquidity. Management acknowledged elevated and volatile fuel costs (fuel headwind ~ $1.33 per share YTD) and a modest accounting breakage adjustment, plus some small-scale operational delays tied to product rollout. Guidance was updated (full-year EPS range narrowed/replaced), reflecting the fuel outlook but management emphasized demand durability, optimization opportunities, and ongoing margin expansion. Overall, the positive operational and commercial achievements substantially outweigh the challenges.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

                      $51.36
                      ▲(25.81% Upside)
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                      Ownership Overview

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