Southwest Airlines maintains a buy rating due to its successful commercial transformation and strong demand, even as higher fuel costs limit near-term gains. The airline's initiatives like assigned seating, extra legroom, and bag fees are expected to generate over $2 billion EBIT by 2026, with EBITDA rising from $2.1 billion in 2025 to $5.0 billion in 2028. Although free cash flow is limited by high capital expenditures and transformation costs, Southwest's improving balance sheet and reduced debt position it well for future shareholder returns once oil price volatility eases.
As of Sep 20, 2026 16:21 WIB, Southwest Airlines (LUV) shares are trading at USD 40.98 on Pluang, up 1.59% for the day. The stock holds a market cap of $20.05 billion and an enterprise value of $23.15 billion, reflecting steady investor interest. Notably, the dividend yield stands at 1.76%, highlighting a modest income return amid the company’s ongoing transformation.
