Southwest Airlines Company ($LUV) Stock Forecast: Up 16.2% Today

What is Southwest Airlines Company?

Southwest Airlines (LUV) is a major U.S. airline recognized for its low-cost carrier approach and widespread domestic route coverage. The airline has recently implemented significant changes in its operational strategy, including the adoption of assigned seating and baggage fees, with the goal of boosting revenue and improving customer satisfaction.

Why is Southwest Airlines Company going up?

LUV stock is up 16.2% on Jan 29, 2026 18:37

• Southwest Airlines' stock saw a notable surge of over 12% post the Q4 2025 earnings report, hitting a fresh 52-week peak.
• Investor response to the company's strategic shifts, like assigned seating and baggage fees, was upbeat, indicating potential for substantial profit growth.
• Despite encountering challenges such as Winter Storm Fern's impact, Southwest Airlines posted strong Q4 results, exceeded EPS projections, and offered encouraging guidance for 2026, bolstering investor trust.
• The overwhelmingly positive feedback on the company's transformation, emphasized during the earnings call, heightened market confidence and contributed to the impressive performance of the stock.

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Southwest CEO: Response to company overhaul 'overwhelmingly positive'

Southwest Airlines leadership, including CEO Bob Jordan and CFO Andrew Watterson, claim customer response to their recent overhaul, which includes assigned seating and baggage fees, has been "overwhelmingly positive." This confidence was expressed during an investor call discussing Q4 and 2025 financial results, despite mixed online sentiment. The airline sees these changes as essential for future revenue growth and meeting customer demands, aiming to attract premium customers.

https://www.chron.com/culture/article/southwest-airlines-changes-21322045.php

A.O. Smith Q4 & FY 2025 slides: Record EPS despite China headwinds

A.O. Smith Corporation reported record adjusted earnings per share of $3.85 for full-year 2025, a 6% increase from the previous year, despite facing headwinds in its Chinese operations. The company's North America segment was the primary growth driver, and it strategically acquired Leonard Valve to expand its water management reach. A.O. Smith projects continued growth and shareholder returns for 2026, though challenges in China are expected to persist.

https://www.investing.com/news/company-news/ao-smith-q4--fy-2025-slides-record-eps-despite-china-headwinds-93CH-4474024

Earnings call transcript: Southwest Airlines Q4 2025 sees EPS beat, stock surges

Southwest Airlines reported Q4 2025 earnings with an EPS of $0.58, exceeding the forecast of $0.57, though revenue of $7.4 billion fell short of the $7.5 billion expectation. Despite the revenue miss, the company's stock surged 6.22% in premarket trading due to strong future guidance and operational achievements, including a projected 2026 adjusted EPS of at least $4. The call highlighted successful implementation of new initiatives like assigned seating, extra legroom, and expanded online presence, driving optimism for continued growth and profitability.

https://www.investing.com/news/transcripts/earnings-call-transcript-southwest-airlines-q4-2025-sees-eps-beat-stock-surges-93CH-4473972

Why Is Southwest Airlines Stock Rising? Q4 Results and Major Business Shift

Southwest Airlines (NYSE: LUV) shares surged over 12% following its Q4 2025 earnings report, driven by a major business model transformation and significantly higher-than-expected 2026 EPS guidance of at least $4.00. The airline is implementing assigned seating, baggage fees, and new fare options, which it expects to result in substantial profit growth. Despite a $30-40 million impact from Winter Storm Fern, the company delivered strong Q4 results and returned $2.9 billion to shareholders in 2025.

https://tokenist.com/why-is-southwest-airlines-stock-rising-q4-results-and-major-business-shift/

Southwest Airlines stock hits 52-week high at 45.08 USD

Southwest Airlines (LUV) stock reached a new 52-week high of $45.08, reflecting robust growth with a 44.15% increase over the past year and 32.7% gains in the last six months. Despite a premium valuation with a P/E ratio of nearly 62 and trading above its Fair Value according to InvestingPro, analysts offer mixed opinions on its valuation. The airline also reported Q4 earnings that slightly beat expectations, though revenue missed, while providing strong 2026 guidance.

https://www.investing.com/news/company-news/southwest-airlines-stock-hits-52week-high-at-4508-usd-93CH-4473663

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Southwest Airlines Company Price History

29.00.2026 - LUV Stock was up 11.8%

• Southwest Airlines shares rose by more than 12% after the company's Q4 2025 earnings surpassed expectations and provided an optimistic 2026 EPS guidance of at least $4.00 per share.
• The implementation of assigned seating, baggage fees, and new fare options by the airline is anticipated to drive significant profit growth, fueling the stock's remarkable performance.
• Despite challenges like the impact of Winter Storm Fern and revenue falling short of expectations, Southwest Airlines' favorable financial outlook and strategic business model evolution have instilled confidence in investors, leading to the stock reaching a new 52-week high.
• Analysts have varying opinions on the stock's valuation, noting a premium P/E ratio and trading above its Fair Value, but the general sentiment remains positive due to the company's strong performance and promising future prospects.

29.00.2026 - LUV Stock was up 16.2%

• Southwest Airlines' stock saw a notable surge of over 12% post the Q4 2025 earnings report, hitting a fresh 52-week peak.
• Investor response to the company's strategic shifts, like assigned seating and baggage fees, was upbeat, indicating potential for substantial profit growth.
• Despite encountering challenges such as Winter Storm Fern's impact, Southwest Airlines posted strong Q4 results, exceeded EPS projections, and offered encouraging guidance for 2026, bolstering investor trust.
• The overwhelmingly positive feedback on the company's transformation, emphasized during the earnings call, heightened market confidence and contributed to the impressive performance of the stock.

05.11.2025 - LUV Stock was up 5.0%

• Despite the adjusted EBIT outlook, Southwest Airlines showed a bullish trend, implying investor confidence in the airline's resilience.
• An upsurge in booking demand may have contributed to the positive market response, underscoring the company's ability to withstand revenue challenges.
• Investor optimism was likely bolstered by a new partnership with a German carrier and the announcement of a quarterly cash dividend, potentially offsetting concerns about the EBIT revision.
• The market appears focused on the company's strategic decisions and recovery in booking demand as opposed to short-term earnings setbacks.

05.11.2025 - LUV Stock was up 5.2%

• Southwest Airlines (LUV) stock displayed a bullish trend despite revising its 2025 EBIT outlook to $500 million, lower than the earlier projection of $600 million to $800 million, attributed to the U.S. government shutdown impact and escalating fuel prices.
• The market apparently responded positively to the prompt rebound in booking demand to expected levels, showcasing resilience to external pressures despite the airline's challenges.
• Investor optimism may stem from Southwest Airlines' forthcoming plans for cabin enhancements and updates to the ticketing process, seen as potential contributors to long-term growth and profitability.
• On the whole, the bullish movement in Southwest Airlines' stock indicates investor confidence in the company's capability to navigate challenges and adjust to evolving market conditions.

05.10.2025 - LUV Stock was up 5.2%

• An announcement about a partnership with Philippine Airlines is believed to have heightened investor confidence in Southwest Airlines. This collaboration could create new opportunities for international travel and increase revenue for the company.
• The positive outlook from major investors in the options market suggests a favorable sentiment regarding Southwest Airlines' future performance, potentially leading to a rise in the stock price.
• The partnership with Philippine Airlines has the potential to expand Southwest Airlines' market share, attract new customers, and enhance its financial performance. These favorable factors likely contributed to the recent upswing in the stock's value.

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.

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.

29.00.2026 - LUV Stock was up 10.3%

• Southwest Airlines (LUV) experienced a bullish movement today, driven by several factors:
• A price target increase for LUV to $45.00 by Evercore ISI, reflecting positive sentiment and growth potential.
• Exceeding Q4 EPS expectations and raising its FY2026 adjusted EPS guidance, indicating strong financial performance.
• Despite concerns about valuation and execution risks, the overall outlook for LUV remains positive, with analysts maintaining a "Hold" rating but showing increased bullish sentiment.
• The shift from open seating to assigned seating, while mourned by some customers, reflects Southwest's responsiveness to consumer feedback and focus on enhancing customer experience.

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.

23.09.2025 - LUV Stock was down 5.7%

• Despite surpassing earnings expectations, Southwest Airlines (LUV) faced bearish movement as it fell short of revenue estimations in Q3.
• The market's response to the revenue disappointment overshadowed the positive earnings per share surprise.
• Concerns among investors may have arisen regarding the fourth quarter revenue projection, with LUV foreseeing a slight 1-3% increase in unit revenues year over year.
• The combination of mixed Q3 results and conservative guidance for the upcoming quarter likely fueled the negative sentiment surrounding Southwest Airlines' stock performance.

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.

11.11.2025 - LUV Stock was up 5.2%

• Analysis of airline pricing strategies, particularly focusing on revenue management, may have positively influenced market sentiment towards airlines like Southwest, leading to increased investor confidence.
• Bearish Q4 guidance from Alaska Air Group and challenges faced by other airlines like Delta and Southwest could have underscored Southwest's resilience and growth potential, contributing to the stock price increase.
• The CEO of Southwest exploring the establishment of airport lounges reflects a strategic shift towards improving customer experience, which investors may perceive favorably and contribute to the bullish movement.
• The positive recognition of Loyalty Juggernaut in loyalty platforms might benefit Southwest indirectly if they leverage these platforms to enhance customer loyalty and engagement, further bolstering the stock's performance.