Investor ConfidenceThe rating on LUV shares is raised to Outperform from In Line given the long-awaited transition to capacity discipline, new revenue initiatives, and strong underlying fleet value.
New Commercial InitiativesRecent new commercial initiatives announced under activist pressure at Southwest could drive billions in incremental revenue.
Strategic AdaptationThe introduction of assigned seating, extra-legroom premium seats, and redeye flights should attract more customers and drive up asset utilization.