Southwest Airlines

LUV

Market cap $21.9B

Jefferies argued that a 10% reduction in average passenger weight could translate into roughly 2% total aircraft weight savings.

Here is how Southwest Airlines (LUV) and Knot Offshore (KNOP) have performed compared to their sector so far this year.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Southwest Airlines (NYSE: LUV) is currently positioned in the final stage of its Adhishthana cycle on the weekly charts, and despite a modest rally in recent weeks, the broader outlook remains uninspiring. When viewed through the lens of Adhishthana principles, the stock's recent strength appears more deceptive than constructive, and investors would be wise not to chase it.

US airlines will kick off fourth-quarter earnings season on Tuesday, January 13, with Delta reporting first, followed by peers through to Southwest on Friday, January 30. American Airlines, reporting later in the month, is expected to see a 3.2% revenue growth in Q4, though profitability is likely to remain constrained.

Economic conditions should offer Delta, and other airline stocks, a tailwind this year

Investors could get an early peek into the outlook for travel demand this year as major airlines start reporting earnings this week.

Airlines make billions of dollars in revenue each year from co-branded credit cards.

Shares in Southwest Airlines (LUV) saw 2022 highs after hitting turbulence through most of 2025. JPMorgan issuing a double upgrade for the stock helped lift momentum.

Southwest Airlines shares climbed over 4% on Friday after JP Morgan issued a rare double upgrade on the carrier, citing growing confidence that a stronger earnings outlook could reshape investor expectations ahead of results later this month.