Southwest Airlines Company ($LUV) Stock Forecast: Down 5.5% Today

What is Southwest Airlines Company?

Southwest Airlines (NYSE: LUV) is a major American airline recognized for its low-cost carrier business model. The airline operates a substantial domestic route network and has faced notable challenges amid the current state of the airline industry.

Why is Southwest Airlines Company going down?

LUV stock is down 5.5% on Jul 30, 2025 13:41

• 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.

LUV Price Chart

LUV Technical Analysis

LUV News

Southwest's Rocky Q3 Outlook Sparks Doubts Over Steep Q4 Profit Climb - Southwest Airlines ( NYSE:LUV )

Southwest shares fell around 11% on Thursday, underperforming peer airlines in coverage after reporting earnings results. Despite the near-term challenges, analyst raises his full-year 2025 EPS estimate to 80 cents from 75 cents. Up Next: Get 5 Dark Horse Stocks Wall Street Is Quietly Loading Up On

https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46638203/southwests-rocky-q3-outlook-sparks-doubts-over-steep-q4-profit-climb

Southwest Airlines Q2 Earnings & Revenues Lag, Decrease Year Over Year

LUV misses Q2 estimates as earnings fell 25.9% and revenues slipped 1.5%, with traffic down and costs up despite lower fuel prices.

https://www.zacks.com/stock/news/2613622/southwest-airlines-q2-earnings-revenues-lag-decrease-year-over-year

Southwest Airlines Reports Worse-Than-Expected Q2, But Sees 'Constructive Backdrop' For Back Half Of 2025 - Southwest Airlines ( NYSE:LUV )

Southwest Airlines reports earnings of 43 cents per share which missed the Street consensus estimate of 51 cents per share. Quarterly revenue comes in at $7.24 billion, missing the $7.3 billion analyst estimate.

https://www.benzinga.com/markets/earnings/25/07/46589835/southwest-airlines-reports-worse-than-expected-q2-but-sees-constructive-backdrop-for-back-half-o

Watch These 4 Transportation Stocks for Q2 Earnings: Beat or Miss?

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

https://www.zacks.com/stock/news/2607882/watch-these-4-transportation-stocks-for-q2-earnings-beat-or-miss

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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.

16.03.2025 - LUV Stock was down 5.0%

• The decline in Southwest Airlines' stock today is linked to the prevalent bearish sentiment in the options trading market, notable among significant financial entities that hold a pessimistic view of the stock.
• Despite the recent increase in Southwest's share price and trading volume, uncertainties surrounding the earnings estimate revisions might have triggered profit-taking among investors, leading to today's bearish trend.
• The rise in bearish options trades from institutional investors and high-net-worth individuals indicates a lack of confidence in Southwest's immediate performance, further adding to the downward pressure on the stock price.

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.

13.02.2025 - LUV Stock was up 5.0%

• LUV stock saw an 8.34% increase in trading today, signaling a strong bullish trend.
• The first-quarter 2025 economic fuel cost per gallon dropped from $2.50-$2.60 to $2.35-$2.45, likely impacting the positive market sentiment.
• Despite revising revenue and capacity estimates downwards for Q1 2025, investors reacted favorably to Southwest Airlines' alterations to its Rapid Rewards and checked baggage policy, displaying confidence in the airline's strategic moves.
• The uptick in trading volume and potential influence of the adjusted earnings estimates on future price actions suggest that the recent upward momentum in LUV stock could persist in the near term.

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.

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.

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.

10.03.2025 - LUV Stock was down 5.2%

• The bearish movement in Southwest Airlines' stock today may be due to significant options trading activity indicating a bearish sentiment among investors.
• Despite the recent surge in Southwest's shares and higher trading volume, uncertainty about the longevity of this strength could be a factor in the bearish movement.
• Market sentiment analyzed through options trading indicates that investors, potentially institutions or high-net-worth individuals, are approaching Southwest Airlines with caution, influencing today's bearish market movement.

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.

03.03.2025 - LUV Stock was down 7.8%

• The options frenzy on Southwest Airlines, with investors taking a bullish stance, might seem contradictory to the bearish movement of the stock today.
• The disparity between the bullish options activity and the bearish stock movement could indicate a potential disconnect between short-term trading sentiment and long-term market fundamentals.
• It's possible that external factors, such as broader market trends or specific industry news, influenced the bearish movement of Southwest Airlines stock despite the optimistic options trading activity.