Stock events for Southwest Airlines Co. (LUV)
Over the past six months, Southwest Airlines Co. (LUV) stock has been influenced by several key events. In the first quarter of 2025, the company reported a net loss of $149 million despite record revenues due to softening demand. For the second quarter of 2025, Southwest updated its full-year EBIT guidance to a range of $600 million to $800 million, a reduction from a previous estimate of $1.7 billion. Despite these headwinds, the company announced a new $2 billion share repurchase program. Southwest also reported signs of improvement in industry demand and successful implementation of new revenue streams. Analyst firms have adjusted their outlooks, with Jefferies Financial Group raising Southwest's price target to $31.00 in October 2025, and Susquehanna Financial raising its price target to $35 from $30. As of October 3, 2025, the share price was $32.52, representing a 4.77% increase since October 7, 2024. Over the past six months, the stock has gained 16.14%.
Demand Seasonality affecting Southwest Airlines Co.’s stock price
Demand for Southwest Airlines' services is seasonal, with strong travel demand during holiday seasons. The company anticipates continued demand, projecting unit revenues to increase year-over-year in the first quarter of 2025. However, there has been a softening in domestic leisure travel demand. Southwest manages seasonality by flexing capacity during peak months and redeploying aircraft in shoulder seasons. The airline's entry into Anchorage in 2026 aims to target summer leisure demand. Capacity adjustments reflect these trends, with expected decreases in capacity in Q1 2025 and increases in Q2 2025, and a reduction in full-year 2025 capacity growth projections due to market uncertainty.
Overview of Southwest Airlines Co.’s business
Southwest Airlines Co. (LUV) is a major American low-cost carrier headquartered in Dallas, Texas, focusing on affordable, high-frequency, point-to-point air travel. Its primary revenue comes from passenger transportation, with additional revenue from cargo and ancillary services. Southwest operates an all-Boeing 737 fleet for operational efficiency.
LUV’s Geographic footprint
Southwest Airlines has a large network within the United States, serving 117 destinations across 42 states, the District of Columbia, and Puerto Rico as of December 31, 2024. It also serves ten additional countries near the southern United States in the Gulf of Mexico and Caribbean Sea regions. In October 2025, Southwest announced plans to launch services to Anchorage, Alaska, in 2026, marking its entry into its 43rd state and bringing its total network to 122 airports. North America accounts for 97.1% of Southwest's revenue, with Latin America contributing the remaining 2.9%.
LUV Corporate Image Assessment
Southwest Airlines has a strong brand reputation, known for its "Southwest Spirit" and customer-centric policies. It is recognized for its affordable pricing, not charging for the first two checked bags, and allowing flight changes without fees. The company has emphasized customer satisfaction and operational reliability. The introduction of a basic economy product has had initial issues but has contributed to exceeding revenue expectations. Partnerships with Chase and Icelandair have also been successful.
Ownership
Southwest Airlines Co. (LUV) is predominantly owned by institutional shareholders, accounting for approximately 95.43% of the company. Major institutional owners include Vanguard Group Inc., Elliott Investment Management L.P., Primecap Management Co/ca, Franklin Resources Inc., State Street Corp, BlackRock, Inc., Price T Rowe Associates Inc, and Geode Capital Management LLC. Berkshire Hathaway Inc. is the largest individual shareholder, owning 104.98 million shares, representing 19.99% of the company.
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$33.42