
Southwest Airlines (LUV) Stock Forecast & Price Target
Southwest Airlines (LUV) Analyst Ratings
Bulls say
Southwest Airlines, as the largest domestic air carrier in the U.S., is poised for growth through its introduction of a basic economy fare in the second quarter of 2025, which is expected to stimulate load factors without significantly cannibalizing existing revenue. The airline's strategy to unlock value through aircraft sales or other means is indicative of a proactive approach to enhancing shareholder value. Additionally, despite recent declines, Southwest is recovering ground on yields, reinforcing its potential for improved financial performance in the future.
Bears say
Southwest Airlines is currently undergoing a significant product transformation that involves the introduction of assigned seating and extra legroom options, scheduled for full rollout in 2026, which introduces execution risks and may affect operational stability. Additionally, the airline has experienced a sharp decline in its load factor, sparking concerns over its ability to attract and retain passengers amidst increasing competitive pressures in the domestic market. Furthermore, while leisure fares remain strong year-over-year, there are signs of pressure in close-in fare categories, indicating potential challenges in revenue generation moving forward.
This aggregate rating is based on analysts' research of Southwest Airlines and is not a guaranteed prediction by Public.com or investment advice.
Southwest Airlines (LUV) Analyst Forecast & Price Prediction
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