Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
Analyst Perspectives | Learn about varied price targets ranging from $29.50 to $36, reflecting mixed views on Southwest's ability to execute new strategies and navigate market challenges. |
Competitive Landscape | Delve into post-pandemic airline industry trends, including capacity management challenges and the growing importance of premium travel segments. |
Financial Outlook | Analysts project improved metrics by 2027: Return on Capital Employed rising to 8.0%, Operating Margin growing to 6.1%, and positive Free Cash Flow reaching $1 billion. |
Strategic Shift | Explore Southwest's bold revenue initiatives, including checked bag fees and basic economy class, aimed at boosting financial performance and closing gaps with competitors. |
Metrics to compare | LUV | Sector Sector - Average of metrics from a broad group of related Industrials sector companies | Relationship RelationshipLUVPeersSector | |
|---|---|---|---|---|
P/E Ratio | 46.5x | 8.2x | 12.5x | |
PEG Ratio | 9.16 | 0.30 | 0.03 | |
Price / Book | 2.6x | 1.3x | 1.4x | |
Price / LTM Sales | 0.7x | 0.5x | 1.3x | |
Upside (Analyst Target) | 9.1% | 24.5% | 19.8% | |
Fair Value Upside | Unlock | 14.4% | 5.9% | Unlock |