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Valued at a market cap of $25.2 billion, Southwest Airlines Co. (LUV) is one of the largest domestic airlines in the United States, providing scheduled passenger air transportation across the U.S. and select international destinations in Mexico, Central America, and the Caribbean. Headquartered in Dallas, Texas, the company operates a point-to-point route network and is known for its low-cost business model, high flight frequency, and all-Boeing 737 fleet, which helps simplify operations and reduce maintenance and training costs.
The airline titan is scheduled to announce its fiscal Q2 earnings for 2026 in the near future. Ahead of this event, analysts expect this airline company to report a profit of $0.50 per share, up 16.3% from $0.43 per share recorded in the year-ago quarter. The company has met or topped Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion.
For the current fiscal year, ending in December, analysts expect LUV to report a profit of $2.93 per share, representing a 215.1% increase from $0.93 per share in fiscal 2025.
LUV has gained 58.5% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 20.9% return and the State Street Industrial Select Sector SPDR ETF’s (XLI) 25.6% uptick over the same time period.
On June 25, Southwest Airlines shares gained more than 3% as crude oil prices fell to a four-month low, raising expectations of lower fuel costs and improved profitability for airlines.
Wall Street analysts are moderately optimistic about LUV’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 10 recommend "Strong Buy," one advises a "Moderate Buy,” nine suggest "Hold," one indicates a "Moderate Sell," and three suggest "Strong Sell.” The stock currently trades above the mean price target of $47.21, and the Street-high target of $65 indicates a 26.4% potential upside from the current price levels.
