Southwest Airlines Co.
- Open
- 39.05
- Day high
- 39.36
- Day low
- 38.45
- Prev close
- 39.64
- Volume
- 4.5M
- Mkt cap
- $18.8B
- P/E (TTM)
- 23.2
- EPS (TTM)
- $1.66
- P/B
- 2.7
- P/S
- 0.6
- Yield
- 1.87%
- Per share
- $0.72
Southwest Airlines Co. (LUV) is a Industrials company listed on NYSE. The stock is up 20% over the past year. Drillr has 6 published research articles covering LUV.
Southwest Airlines Co. (LUV) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 15 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LUV earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $0.51 | $0.94 | +84.3% | $8.4B | -1.2% |
| Apr 23, 2026 | $0.45 | $0.45 | +0.0% | $7.2B | +0.2% |
| Jan 28, 2026 | $0.56 | $0.58 | +3.6% | $7.4B | +4.3% |
| Oct 22, 2025 | $-0.04 | $0.11 | +398.7% | $6.9B | +0.4% |
| Jul 23, 2025 | $0.51 | $0.43 | -15.9% | $7.2B | -0.9% |
| Apr 23, 2025 | $-0.18 | $-0.13 | +29.2% | $6.4B | +0.4% |
| Jan 30, 2025 | $0.46 | $0.56 | +21.3% | $6.9B | -0.7% |
| Oct 24, 2024 | $0.00 | $0.15 | +3650.0% | $6.9B | +1.3% |
| Jul 25, 2024 | $0.51 | $0.58 | +13.7% | $7.4B | +0.3% |
| Apr 25, 2024 | $-0.34 | $-0.36 | -7.1% | $6.3B | -1.3% |
| Jan 25, 2024 | $0.11 | $0.37 | +236.4% | $6.8B | +1.0% |
| Oct 26, 2023 | $0.38 | $0.38 | +0.0% | $6.5B | -2.0% |
LUV insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 25, 2026 | Martinez Jimmy Ryanofficer: Principal Accounting Officer | Tax | 179 | $40.38 |
| Aug 11, 2026 | Krishna Varundirector | Grant | 3,787 | — |
| Aug 11, 2026 | Liberty Jason Tdirector | Grant | 3,787 | — |
| Aug 7, 2026 | Doxey Tomofficer: EVP, Chief Financial Officer | Grant | 6,316 | — |
| Aug 7, 2026 | Roach Anthonyofficer: Chief Customer & Brand Officer | Grant | 9,506 | — |
| Aug 7, 2026 | Jordan Robert Edirector, officer: CEO & President | Grant | 28,321 | — |
| Aug 7, 2026 | Jones Justinofficer: EVP & Chief Commercial Officer | Grant | 8,568 | — |
| Aug 7, 2026 | Watterson Andrew Mofficer: Chief Operating Officer | Grant | 2,995 | — |
| Aug 7, 2026 | Woods Lauren Tauscherofficer: EVP & CIO | Grant | 7,598 | — |
| May 11, 2026 | Hess David Pdirector | Grant | 4,108 | — |
| May 11, 2026 | Reynolds Christopher P.director | Grant | 4,108 | — |
| May 11, 2026 | Feinberg Sarahdirector | Grant | 4,108 | — |
| May 11, 2026 | Breber Pierre Rdirector | Grant | 4,108 | — |
| May 11, 2026 | Watson Patricia Adirector | Grant | 4,108 | — |
| May 11, 2026 | FORNARO ROBERT Ldirector | Grant | 4,108 | — |
Source: LUV SEC Form 4 filings, latest Aug 25, 2026. For informational purposes only — not investment advice.
See the full LUV insider & 13F page →LUV research & analysis
AAL: Can Airlines Pass Iran-Driven Fuel Spike to Summer Tickets
Airlines are raising fares and cutting forecasts as Iran conflict-driven jet fuel costs spike heading into summer 2026. United's "uncharted territory" comment and Alaska Air's confirmation that fares won't drop signal 10-20% fare increases are underway — but demand response remains uncertain. Short AAL into Q2 earnings as its leveraged balance sheet and weak pricing power leave it most exposed if summer bookings decline >8% YoY.
AALDALUALSouthwest's Fuel Warning Dwarfs Delta's $100 Per Long-Haul Flight
Southwest's fuel cost warning has been mispriced as sector-wide pain. The $100 per long-haul flight cost surge hits Delta, American and United 3-14x harder than domestic-focused Southwest and Alaska due to international route exposure. Short long-haul carriers against domestic operators targets 5-10% relative return over 90 days as Q2 earnings reveal the gap.
DALAALUALAirlines' Jet Fuel Costs Dwarf Refiners' Crack Spread Gains by 3:1 Margin
Persistent $150 crude jet fuel prices create a zero-sum margin transfer: airlines lose 8-10% operating income while refiners gain 12-15%. The market's focus on passenger surcharges misses the structural asymmetry. Long VLO/MPC paired with AAL/LUV targets +10-15% relative return over 3-6 months, breaking if jet fuel reverts to $90 by September or airlines outperform refiners by 5%+ over 120 days.
AALDALVLOAirlines and the Oil Spike: JBLU and AAL Most Exposed as Fuel Hedge Gap Widens
US airlines' lack of fuel hedges exposes them to the April 12 Hormuz blockade-driven oil spike; JBLU and AAL most vulnerable due to losses/debt, while Delta's refinery offers protection. Ranked analysis of six carriers with financials shows clear hierarchy of pain.
AALJBLUALKHormuz Blockade Could Spike Summer Airfares 25% — DAL Wins, AAL Most at Risk
Strait of Hormuz blockade spikes oil, threatening 2026 summer airfares and airline margins. Delta's refinery edge positions it best; high-debt AAL vulnerable. Expect 15-25% fare hikes but demand risks.
DALAALUALAirline M&A: DAL and UAL Lead as DOT Greenlights More Consolidation — JBLU at Risk
DOT Secretary Duffy's endorsement of more airline M&A highlights consolidation opportunities as weaker carriers falter. Delta and United lead winners with strong balance sheets and premium strategies, while JetBlue and Allegiant face risks. Ranked picks favor low-leverage majors for market share gains.
DALAALUAL
Southwest Airlines Co. company profile
Overview
Southwest Airlines Co. (NYSE:LUV) is a major American low-cost carrier founded in 1967 and headquartered in Dallas, Texas. The airline went public in 1980 and has grown to become one of the largest domestic airlines in the United States. Southwest pioneered the low-cost carrier model in American aviation, focusing on point-to-point travel rather than the traditional hub-and-spoke system used by legacy carriers. The company operates an all-Boeing 737 fleet and has built its brand around affordable fares, no baggage fees, and a distinctive open-seating policy, though it is currently undergoing significant strategic changes including the introduction of assigned seating and premium cabin configurations.
Business
Southwest Airlines operates as a passenger airline providing scheduled air transportation services primarily within the United States and to select near-international destinations. The airline industry involves transporting passengers between cities using commercial aircraft, with revenue generated through ticket sales and ancillary services. The company's core service is domestic air travel, operating a fleet of 728 Boeing 737 aircraft serving 121 destinations across 42 states, the District of Columbia, Puerto Rico, and 10 near-international countries including Mexico, Jamaica, the Bahamas, and several Caribbean nations. Unlike traditional "hub-and-spoke" airlines that route most flights through major hub airports, Southwest uses a point-to-point network model, offering direct flights between city pairs without requiring connections through central hubs. Southwest's business model centers on being a low-cost carrier (LCC), which means offering basic air transportation at lower prices than full-service airlines by eliminating many traditional airline amenities and operating with higher efficiency. The airline has historically differentiated itself through its open seating policy (no assigned seats), no baggage fees for the first two checked bags, and a more casual, friendly service culture. The company also operates several ancillary revenue streams including the Rapid Rewards loyalty program that allows customers to earn points for flights and partner purchases, inflight Wi-Fi and entertainment services, and various add-on services like EarlyBird Check-In for priority boarding, upgraded boarding positions, and pet transportation services. Additionally, Southwest offers SWABIZ, a corporate booking platform for business travelers, and is preparing to launch Getaways by Southwest, a vacation packaging service.
Revenue model
Southwest generates revenue primarily through passenger ticket sales, which account for the vast majority of its income. Customers pay for individual flights, with pricing that varies based on demand, route, and timing. The airline uses dynamic pricing algorithms to optimize revenue per seat, adjusting fares based on booking patterns and market conditions. Ancillary revenue represents a growing portion of income, including fees for EarlyBird Check-In (allowing earlier boarding for better seat selection), upgraded boarding positions, Wi-Fi services, and transportation of pets and unaccompanied minors. The company's co-branded credit card partnership with Chase also generates significant revenue through customer sign-ups and spending-based commissions. The Rapid Rewards loyalty program drives customer retention and repeat business. The airline's profitability is heavily influenced by several key factors. Fuel costs represent one of the largest expense categories and are subject to volatile commodity pricing, directly impacting margins. Labor costs are substantial, as Southwest maintains unionized workforce with competitive compensation packages. The company's margins benefit from high aircraft utilization rates and operational efficiency, including quick turnaround times at airports and high load factors (percentage of seats filled). Capacity management significantly affects profitability - the airline must balance adding flights to capture demand against oversupplying routes that would depress pricing. Competition from other low-cost carriers and legacy airlines can pressure fares, while economic conditions affect both business and leisure travel demand. Regulatory changes, airport fees, and aircraft delivery delays from Boeing also impact operational costs and growth plans. The company is currently implementing major strategic initiatives expected to generate approximately $1.8 billion in incremental annual revenue through assigned seating, premium cabin offerings, and operational improvements.
Risks & safety
Southwest maintains a moderate margin of safety with solid liquidity but elevated debt levels and cyclical earnings volatility. • Liquidity position: Strong with $8.1 billion in cash and short-term investments as of Q1 2025, providing substantial cushion for operations and unexpected disruptions • Debt levels: Debt-to-equity ratio of 0.85, indicating moderate leverage that is manageable but not conservative by historical standards • Cash flow: Positive operating cash flow of $860 million in Q1 2025, though free cash flow was only $359 million after capital expenditures • Solvency risk: Low near-term bankruptcy risk given cash position and operational cash generation, though cyclical nature of airline industry creates inherent volatility • Valuation metrics: Trading at 20.4x EV/EBITDA based on Q1 2025 results, which appears elevated for a cyclical business with modest growth prospects • Current ratio: 0.77 indicates working capital deficit, typical for airlines due to advance ticket sales creating current liabilities • Other considerations: Boeing delivery delays create operational uncertainty, while major strategic transformation (assigned seating, premium cabins) introduces execution risk to financial projections
Recent development
Southwest has undergone its most significant strategic transformation in company history over the past two years. The most dramatic change is the abandonment of open seating, with the airline planning to introduce assigned seating and premium cabin configurations beginning in 2025, with full implementation by Q1 2026. Approximately one-third of seats will offer extended legroom as premium options, representing a fundamental shift from Southwest's historical egalitarian approach. The company has launched several revenue enhancement initiatives targeting $1.8 billion in incremental annual EBIT. These include dynamic pricing for upgraded boarding, an enhanced Rapid Rewards loyalty program, and an amended co-branded credit card agreement with Chase. Southwest is also preparing to introduce basic economy pricing, bag fees for certain fare types, and flight credit expiration policies, moving closer to industry-standard practices. Operational improvements focus on efficiency gains, including reducing minimum aircraft turn times by 5 minutes across 19 stations and planning to introduce 33 daily red-eye flights to improve aircraft utilization. The airline is implementing significant cost reduction programs targeting over $500 million in run-rate savings by 2027, including a planned reduction of 2,000 employees through attrition and voluntary programs. Network expansion includes new partnership agreements, with Icelandair being the first commercial codeshare partner, and the launch of Getaways by Southwest vacation packaging service. The company is also expanding distribution channels, including partnerships with Expedia. Despite Boeing delivery delays limiting growth, Southwest is maintaining modest capacity expansion of approximately 1% annually while focusing on route optimization and market efficiency improvements.
LUV company profile · for informational purposes only — not investment advice.
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