Southwest Airlines

LUV

Market cap $23.3B

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Southwest Airlines (LUV) is rated 'Hold' with a $44/share price target, reflecting transformation upside but significant fuel and execution risks. LUV's 1Q26 results validated cost management and fee adoption strategies, but fuel price volatility and lack of hedging threaten full-year EPS targets. Management's $4/share 2026 EPS guidance appears optimistic; my revised estimate is $2.9/share, accounting for higher jet fuel costs and execution risks.

DALLAS, July 13, 2026 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its first quarter 2026 financial results. Details are as follows: When: Thursday, July 23, 2026, at 10:00 AM Eastern Time Web Address:      http://www.southwestairlinesinvestorrelations.com/ To access the live audio webcast and subsequent replay, click on the link above, or go to www.southwest.com and click on "Investor Relations" under the "About Southwest" menu at the bottom of the page.

Two recent incidents regarding a Boeing 737 MAX aircraft have put Boeing Co. NYSE: BA stock back in the spotlight, and not in a good way. Both incidents occurred on Southwest Airlines NYSE: LUV jets.

Stocks were in a heavily risk-off mood Wednesday as oil prices surged. The crucial tech slice of the market looks set to rebound despite continued fighting between the U.S. and Iran. Traders seem to be anticipating a repeat of the now familiar pattern—a cessation of hostilities and talk of a “deal.”

The U.S. Global Jets ETF is down 4% Wednesday, extending a two-day decline after challenging all-time highs last week.

The latest government data reveals that U.S. airlines spent $6.66 billion on jet fuel in May 2026.

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Carriers see travelers continuing to pay up—and aren't rushing to bring back flights and routes trimmed during oil's surge.

Southwest Airlines is initiated with a "Buy" rating, citing a turnaround, strong forward earnings trends, and favorable macro tailwinds. LUV expects EPS to more than triple to $2.96 this year, with out-year earnings potentially exceeding $4.50 and normalized growth by FY 2028. Valuation appears attractive; applying a low-teens P/E to $4.50 normalized EPS suggests shares could reach $60, supported by strong travel trends and lower energy costs.