Southwest Airlines

LUV · NYSE

$39.65+$0.85 (+2.19%)TodayMarket closed · Oct 20, 7:50 PM ET

Prev close $38.80

LUV analyst rating

HoldConsensus of 19 analysts over the last 12 months. 42% rate it a buy.

Strong buy0
Buy8
Hold9
Underperform1
Sell1

12-month price target · 25 analysts

Average $50.35 (+27.0% upside)

Low: $35.35
Now: $39.65
High: $68.25

Upgrades and downgrades

The latest rating actions, newest first

LUV analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
UBS	Oct 16, 2026	Maintains	Buy	$53.00 → $52.00	35%
Susquehanna	Oct 7, 2026	Maintains	Neutral	$50.00 → $45.00	66%
TD Cowen	Oct 2, 2026	Maintains	Buy	$48.00 → $47.00	22%
BMO Capital	Sep 28, 2026	Maintains	Outperform	$60.00 → $50.00	15%
UBS	Sep 24, 2026	Maintains	Buy	$49.00 → $53.00	35%
Rothschild & Co	Sep 18, 2026	Upgrade	Sell → Neutral	$35.00 → $40.00	50%
Barclays	Sep 11, 2026	Maintains	Overweight	$65.00 → $58.00	50%
UBS	Sep 10, 2026	Maintains	Buy	$56.00 → $49.00	35%
Raymond James	Aug 24, 2026	Maintains	Outperform	$60.00 → $54.00	53%
TD Cowen	Aug 24, 2026	Maintains	Buy	$53.00 → $48.00	22%

The case for and against

Updated Oct 19, 2025

Bull case

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.

Bear case

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.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.