
Southwest Airlines (LUV) Stock Forecast & Price Target
Southwest Airlines (LUV) Analyst Ratings
Bulls say
Southwest Airlines is poised for a positive financial trajectory with the introduction of a basic economy fare option in the second quarter of 2025, which is expected to enhance load factors without significant cannibalization of existing revenue streams. The airline's strategy to unlock value through aircraft sales and its ongoing yield improvements are also indicative of a robust financial position. These initiatives should bolster Southwest's market competitiveness, especially in light of its substantial domestic passenger base and a streamlined Boeing 737 fleet.
Bears say
Southwest Airlines is currently facing potential challenges due to a significant decline in its load factor, which could lead to further earnings volatility in a competitive landscape characterized by fungible aircraft supply. The airline is undergoing a transformative shift to introduce assigned seating and extra legroom configurations, scheduled for completion in 2026, which introduces execution risk amid this transition. Furthermore, while leisure fares in Southwest’s markets have shown some resilience year-over-year, pressures on close-in fares indicate vulnerabilities that could negatively impact future revenue streams.
This aggregate rating is based on analysts' research of Southwest Airlines and is not a guaranteed prediction by Public.com or investment advice.
Southwest Airlines (LUV) Analyst Forecast & Price Prediction
Start investing in Southwest Airlines (LUV)
Order type
Buy in
Order amount
Est. shares
0 shares