Southwest Airlines Co

Southwest Airlines Co

LUV

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Market Cap$20.99B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Southwest Airlines CoSouthwest Airlines Co26.21.68%12%0.71.9

Earnings Call Q1 2026

April 23, 2026 - AI Summary

Financial Performance & Growth: Southwest Airlines reported an EPS of $0.45 for Q1 2026, a significant improvement from a loss of $0.26 per share in the previous year. The operating margin increased to 4.6%, an 8.1-point improvement year-over-year, driven by strong customer demand and successful implementation of new initiatives.
Capacity & Revenue Forecast: The airline expects unit revenue growth of 16.5% to 18.5% in Q2 2026 and anticipates a RASM (Revenue per Available Seat Mile) increase based on strong trends in customer purchasing behavior, specifically among business travelers with managed corporate revenue up 16% in Q1.
Fuel Costs & Guidance Uncertainty: While the company has shown strong operational performance, rising fuel costs remain a significant headwind, estimated to impact 2026 performance heavily. They have not updated their full-year adjusted EPS guidance of $4 due to this volatility in fuel prices.

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$48.62

Target Price by Analysts

19% upsideSouthwest Airlines Target Price DetailsTarget Price
$-4.08

Current Fair Value

110% downside

Overvalued by 110% based on the discounted cash flow analysis.

Share Statistics

Market cap$20.99 Billion
Enterprise Value$30.81 Billion
Dividend Yield$0.72 (1.68%)
Earnings per Share$0.82
Beta1.11
Outstanding Shares498,000,000

Return

Return on Equity11.88%ROE
Return on Assets2.78%
Return on Invested Capital6.91%

Valuation & Multiples

P/E Ratio26.18P/E Ratio
PEG-10.37PEG
Price to Sales0.7Price to Sales
Price to Book Ratio3.14Price to Book Ratio
Enterprise Value to Revenue1.07
Enterprise Value to EBIT26.45
Enterprise Value to Net Income37
Total Debt to Enterprise0.43
Debt to Equity1.91Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
April 22, 2026
EPS Estimate
$0.45
Average shareholder expectation
Revenue Estimate
$7.27 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 22, 2026
EPS Estimate
$0.49
Average shareholder expectation
Revenue Estimate
$8.57 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.5866 35.08%
Total Calls16,378,046 77.12%
Total Puts9,607,600 10.83%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %84.30% 9.62%
Total Invested$16.34B 18.44%
Investors Holding915 19.00%

ESG Score

No data

About Southwest Airlines Co

CEO: Gary Kelly

In its 50th year of service, Dallas-based Southwest Airlines Co. continues to differentiate itself from other air carriers with exemplary Customer Service to a Customer base topping 130 million passengers in 2019. Southwest became the na...

Relevant Senate Committees

Joint Committee on Taxation

As the body responsible for analyzing and scoring tax legislation, this committee directly influences the corporate tax burden, capital investment incentives, and overall fiscal policy that profoundly impacts Southwest Airlines' financial performance and strategic planning.

Finance

This committee controls taxation, trade, and entitlement spending. Corporate tax policy directly impacts Southwest's profitability, while trade policy can affect international operations, supply chains, or passenger flows.

Appropriations

This committee allocates federal discretionary spending, including funding for the FAA, TSA, and airport infrastructure projects. Its decisions directly impact the operational environment, safety, and capacity of the aviation system Southwest relies upon.

Health, Education, Labor, and Pensions

Airlines are highly labor-intensive and often unionized. This committee's oversight of labor laws, minimum wage regulations, union relations, and pension policies directly impacts a significant portion of Southwest's operating costs and workforce management.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, including the Federal Aviation Administration (FAA) and Department of Transportation (DOT). It directly regulates airline safety, routes, consumer protection, and competition, making it highly relevant.

Energy and Natural Resources

Fuel is one of the largest operating expenses for airlines. This committee's policies on national energy, oil and gas production, and alternative fuels directly impact fuel prices and supply, which are critical to Southwest's profitability.