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Southwest Airlines Company ($LUV) Stock Forecast: Down 8.2% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Southwest Airlines Company?

Southwest Airlines (NYSE: LUV) is a major American airline known for its low-cost carrier model and extensive domestic route network. The airline industry has been recovering from the impact of the pandemic, with travel demand gradually picking up.

Why is Southwest Airlines Company going down?

LUV stock is down 8.2% on Oct 23, 2025 16:40

  • Despite Southwest Airlines surprising with a profit in their third-quarter results, the stock experienced a bearish movement.
  • The market may have reacted negatively due to profit-taking by investors after the positive earnings report.
  • Investors might have been expecting even stronger results, leading to a sell-off in the stock.
  • The overall sentiment in the transportation sector could have influenced LUV's stock movement, as investors compare the company's performance with its peers like UNP, AAL, and NSC.

LUV Price Chart

LUV Technical Analysis

LUV News

Southwest Airlines Surprises With Profit, Expects Momentum To Continue Into Q4 - Southwest Airlines ( NYSE:LUV )

Southwest Airlines Company ( NYSE:LUV ) shares are trading higher on Thursday after the company reported third-quarter FY25 results on Wednesday. The company reported adjusted earnings of 11 cents per share, which exceeded the Street consensus estimate of a loss of 3 cents per share.

https://www.benzinga.com/markets/earnings/25/10/48380501/southwest-airlines-surprises-with-profit-expects-momentum-to-continue-into-q4

0 News Article Image Southwest Airlines Surprises With Profit, Expects Momentum To Continue Into Q4 - Southwest Airlines  ( NYSE:LUV )

Watch These 4 Transportation Stocks for Q3 Earnings: Beat or Miss?

Investors interested in the Transportation sector can watch out for third-quarter 2025 earnings reports of LUV, UNP, AAL and NSC.

https://www.zacks.com/stock/news/2774483/watch-these-4-transportation-stocks-for-q3-earnings-beat-or-miss

1 Missing News Article Image Watch These 4 Transportation Stocks for Q3 Earnings: Beat or Miss?

Southwest Airlines Company Price History

30.06.2025 - LUV Stock was down 5.5%

  • Southwest Airlines (LUV) witnessed a significant downturn today, with shares plunging approximately 11%.
  • This downward trend is linked to the company's uncertain Q3 outlook, raising doubts about achieving a substantial profit increase in Q4.
  • Despite analysts raising full-year EPS projections, concerns likely arose due to the company missing Q2 earnings and revenue targets, coupled with decreased traffic and rising expenses.
  • The prevailing negative market sentiment towards airlines, evident in the weaker performance of industry peers, may have exacerbated the decline in Southwest Airlines' stock.

23.03.2025 - LUV Stock was up 5.2%

  • The stock of Southwest Airlines (LUV) experienced a significant upward movement recently, possibly reflecting optimism about the forthcoming first-quarter earnings announcement.
  • Market sentiment seems positive regarding the likelihood that LUV, alongside other transportation companies, may meet or surpass their financial targets for the first quarter.
  • Investor interest in the transportation industry, which includes LUV, suggests a rising confidence in the sector's ability to withstand challenges and deliver solid financial results.

23.09.2025 - LUV Stock was down 6.1%

  • The bearish movement in LUV could be due to disappointing third-quarter earnings results, possibly missing analysts' expectations.
  • Investors might have reacted negatively to any guidance or outlook provided by Southwest Airlines during their earnings call.
  • Market sentiment towards the transportation sector as a whole might have also influenced the bearish movement in LUV, especially if there are concerns about future travel demand or rising operating costs.

09.09.2025 - LUV Stock was up 0.2%

  • Despite a slight drop in the current market session, Southwest Airlines' stock has shown a significant bullish movement over the past month and year.
  • The positive trend in the stock price could be attributed to improving market sentiment towards the airline industry as vaccination efforts progress and travel restrictions ease.
  • Investors may be optimistic about Southwest's potential for recovery as more people feel comfortable traveling again, leading to increased demand for the company's services.
  • The overall positive performance of Southwest Airlines' stock reflects growing confidence in the airline's ability to navigate the challenges posed by the pandemic and adapt to the changing market conditions.

24.06.2025 - LUV Stock was down 12.3%

  • Southwest Airlines (LUV) experienced a bearish movement today due to missing Q2 earnings and revenue estimates, with a 25.9% decrease in earnings and a 1.5% slip in revenues.
  • Despite lower fuel prices, the airline faced challenges with decreased traffic and increased costs, impacting its financial performance.
  • The market reacted negatively to the news, reflecting investor concerns about Southwest Airlines' Q2 performance and the broader challenges facing the airline industry.
  • The "constructive backdrop" mentioned for the back half of 2025 by Southwest Airlines may provide some optimism for the future, but the disappointing Q2 results weighed heavily on the stock today.

24.06.2025 - LUV Stock was down 10.3%

  • Southwest Airlines reported weaker-than-expected Q2 earnings, missing analyst estimates for earnings per share and falling below quarterly revenue expectations, likely leading to a decline in the stock's performance.
  • Despite the earnings shortfall, Southwest Airlines remains optimistic about the second half of 2025, citing a positive outlook for future performance.
  • The transportation sector, encompassing airlines like Delta and United, has seen a mix of earnings outcomes, with some surpassing estimates while facing cost challenges. This industry landscape could have influenced investor sentiment towards Southwest Airlines.
  • Investors will be monitoring closely for any strategic or operational adjustments from Southwest Airlines in light of the Q2 results to assess the company's potential for future growth.

01.04.2025 - LUV Stock was up 5.1%

  • Southwest Airlines (LUV) stock saw a significant increase in value following the announcement of its first-quarter earnings.
  • The company's revenue surpassed what analysts had predicted, showcasing strong financial performance despite industry challenges.
  • Investors reacted favorably to the earnings results, leading to a rise in the stock price as confidence in Southwest's ability to navigate current market conditions grew.
  • The positive earnings report indicates that Southwest Airlines is effectively handling the pandemic's effects on its operations, positioning the company for future growth as travel demand slowly rebounds.

22.07.2025 - LUV Stock was up 5.1%

  • Despite being down 6.6% since the last earnings report, investors seem to have regained confidence in Southwest Airlines, leading to today's bullish movement.
  • The market may be reacting positively to new developments or future growth prospects within the airline industry, potentially overshadowing concerns from the previous earnings report.
  • Investors might be optimistic about Southwest's ability to navigate challenges and capitalize on opportunities in the post-pandemic travel recovery phase, driving the stock higher.

02.04.2025 - LUV Stock was up 5.4%

  • Despite industry challenges, Southwest Airlines (LUV) saw a significant bullish trend, potentially influenced by favorable Q1 earnings.
  • Investor confidence in LUV's future prospects seems to overshadow the immediate effects of reduced air travel demand due to tariffs.
  • The upward movement in LUV's performance may also stem from internal cost-saving efforts or strategic choices made by the airline to adapt to the current market environment.

23.09.2025 - LUV Stock was down 8.2%

  • Despite Southwest Airlines surprising with a profit in their third-quarter results, the stock experienced a bearish movement.
  • The market may have reacted negatively due to profit-taking by investors after the positive earnings report.
  • Investors might have been expecting even stronger results, leading to a sell-off in the stock.
  • The overall sentiment in the transportation sector could have influenced LUV's stock movement, as investors compare the company's performance with its peers like UNP, AAL, and NSC.

10.06.2025 - LUV Stock was up 8.9%

  • Southwest Airlines (NYSE: LUV) is a prominent American airline recognized for its affordable ticket prices and wide range of domestic flight destinations. The airline sector has been gradually rebounding from the effects of the pandemic, with a growing interest in air travel as restrictions are lifted.
  • Southwest Airlines' stock (LUV) is experiencing a bullish trend today, possibly influenced by positive sentiments in the options market. Investors with notable resources are displaying a bullish outlook on the company, showcasing faith in its capacity to benefit from the resurgence in travel demand and surpass projections in the coming days.

22.04.2025 - LUV Stock was up 21.1%

  • The bullish movement in Southwest Airlines' stock (LUV) could be attributed to a decision that halted a lawsuit initiated by one administration over alleged flight delays. This development likely brought relief to investors and indicated a potential resolution to legal uncertainties.
  • Insider buying activity in LUV may have also contributed to the positive sentiment, indicating confidence in the company's future despite industry challenges.
  • A comparison between Delta Air Lines (DAL) and Southwest Airlines (LUV) in terms of tariff risks may have positioned LUV as a more favorable option, generating increased investor interest and boosting the stock price.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.