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.
Analyst Perspectives | Learn about varied price targets ranging from $29.50 to $36, reflecting mixed views on Southwest's ability to execute new strategies and navigate market challenges. |
Competitive Landscape | Delve into post-pandemic airline industry trends, including capacity management challenges and the growing importance of premium travel segments. |
Financial Outlook | Analysts project improved metrics by 2027: Return on Capital Employed rising to 8.0%, Operating Margin growing to 6.1%, and positive Free Cash Flow reaching $1 billion. |
Strategic Shift | Explore Southwest's bold revenue initiatives, including checked bag fees and basic economy class, aimed at boosting financial performance and closing gaps with competitors. |
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 | 38.0x | 8.1x | 12.4x | |
PEG Ratio | 1.01 | 0.04 | 0.03 | |
Price / Book | 2.2x | 2.5x | 1.4x | |
Price / LTM Sales | 0.8x | 0.5x | 1.2x | |
Upside (Analyst Target) | −9.6% | 19.6% | 15.1% | |
Fair Value Upside | Unlock | 21.3% | 6.6% | Unlock |