Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2024, 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. It also provides inflight entertainment and connectivity services; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
Strategic Shift | Explore Southwest's bold move towards assigned seating and premium options, marking a significant departure from its traditional low-cost carrier model |
Financial Turbulence | Delve into Southwest's mixed financial performance, with analysts projecting EPS growth from $0.20 in FY1 to $1.15 in FY2 amid margin pressures |
Competitive Headwinds | Learn how Southwest is navigating increased competition from network carriers in premium segments while striving to maintain its low-cost identity |
Future Flight Path | Analyst price targets range from $27 to $35, reflecting varied opinions on Southwest's ability to execute its new strategy and improve profitability |
Metrics to compare | LUV | Sector Sector - Average of metrics from a broad group of related Industrials sector companies | Relationship RelationshipLUVPeersSector | |
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P/E Ratio | 33.1x | 6.6x | 11.9x | |
PEG Ratio | 0.88 | −0.01 | 0.03 | |
Price/Book | 1.9x | 2.1x | 1.4x | |
Price / LTM Sales | 0.7x | 0.4x | 1.2x | |
Upside (Analyst Target) | −11.8% | 28.4% | 19.3% | |
Fair Value Upside | Unlock | 22.4% | 8.6% | Unlock |