# Southwest Airlines Co. (LUV)

> Source: Nexqual · https://nexqual.com/LUV · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Southwest Airlines Co. (LUV), nexqual.com/LUV" · informational, not investment advice.

**Price:** USD 42.03 (+5.39% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 39.88 · day 38.65–42.08 · 52w 29.26–55.11 · market cap $20.6B · NYQ

## Key facts
- Last four reported quarters (through Sep 30, 2026): revenue $31.5B, net income $1.05B (3.3% margin), free cash flow -$449M (SEC filings).
- Valuation: P/E 19.5x (avg 46.2x at the last 3 fiscal year-ends).
- 2 of 80 tracked superinvestors hold LUV (13F, Q2 2026): 0 new, 1 added, 1 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $4K; 1 not under a Rule 10b5-1 plan ($4K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.60 on a 1–5 scale) (25 analysts), mean target USD 49.18 (range 34–65).
- Total return with dividends: 1Y +35.2% vs S&P 500 +14.9%; 5Y -3.9% vs S&P 500 +80.3%.
- Next earnings: 2026-10-21, EPS estimate USD 0.76, revenue estimate $9.17B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $15.8B | $23.8B | $26.1B | $27.5B | $28.1B | $31.5B |
| Operating income | $1.72B | $1.02B | $224M | $321M | $428M | $1.39B |
| Net income | $977M | $539M | $465M | $465M | $441M | $1.05B |
| EPS (diluted) | $1.61 | $0.87 | $0.76 | $0.76 | $0.79 | — |
| Free cash flow | $1.82B | -$134M | -$356M | -$1.59B | -$831M | -$449M |
| Operating margin | 10.9% | 4.3% | 0.9% | 1.2% | 1.5% | 4.4% |
| Net margin | 6.2% | 2.3% | 1.8% | 1.7% | 1.6% | 3.3% |
| Revenue growth | +74.5% | +50.8% | +9.6% | +5.3% | +2.1% | — |
| Cash + short-term investments | $15.5B | $12.3B | $11.5B | $8.72B | $3.23B | — |
| Total debt | $10.8B | $8.10B | $8.01B | $6.70B | $4.93B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Sep 30, 2026)
P/E 19.5x · P/S 0.7x · P/B 2.8x · FCF yield -2.18% · Earnings yield 5.12% · Dividend yield (paid, TTM) 1.74% · Buyback yield (TTM) 6.32%
P/E at fiscal year-ends: Dec 2025 52.3x, Dec 2024 46.5x, Dec 2023 39.7x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold LUV. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Harry Burn | Sound Shore | 3.87% | $126M | Added +22.0% |
| First Eagle Investment | First Eagle Investment Management | <0.01% | $360K | Reduced -30.0% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-04-07 | Atherton Lisa M | Director | 118 | $4K | 1% | No | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.60 on a 1–5 scale), 25 analysts; mean target USD 49.18 (low 34, high 65).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-16 | UBS | Target lowered | Buy | $53 → $52 |
| 2026-10-07 | Susquehanna | Target lowered | Neutral | $50 → $45 |
| 2026-10-02 | TD Cowen | Target lowered | Buy | $48 → $47 |
| 2026-09-28 | BMO Capital | Target lowered | Outperform | $60 → $50 |
| 2026-09-24 | UBS | Target raised | Buy | $49 → $53 |
| 2026-09-18 | Rothschild & Co | Upgrade | Sell → Neutral | $35 → $40 |
| 2026-09-11 | Barclays | Target lowered | Overweight | $65 → $58 |
| 2026-09-10 | UBS | Target lowered | Buy | $56 → $49 |
| 2026-08-24 | Raymond James | Target lowered | Outperform | $60 → $54 |
| 2026-08-24 | TD Cowen | Target lowered | Buy | $53 → $48 |
| 2026-07-24 | JP Morgan | Target lowered | Overweight | $60 → $59 |
| 2026-07-24 | BMO Capital | Target raised | Outperform | $58.5 → $60 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +35.2% | -3.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +35.3% | -0.8% |
| Volatility (annualized) | 43.5% | 39.0% |
| Max drawdown | -33.5% (Feb 2026→Mar 2026) | -56.3% (Nov 2021→Oct 2023) |

## Peers (Airlines)
RYAAY (Ryanair Holdings plc) USD 53.67 -0.79% · UAL (United Airlines Holdings, Inc.) USD 102 +0.32% · AAL (American Airlines Group, Inc.) USD 12.6 +2.94% · DAL (Delta Air Lines, Inc.) USD 79.26 +2.05% · CPA (Copa Holdings, S.A.) USD 134.86 -0.94% · ALK (Alaska Air Group, Inc.) USD 35.38 +5.49%

## More
Full page: https://nexqual.com/LUV · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in LUV's own 10-K filed 2026-02-05 (https://www.sec.gov/Archives/edgar/data/92380/000009238026000004/luv-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Boeing (BA) | "The Company is currently dependent on a single engine supplier, as well as single suppliers of certain other aircraft parts and equipment; therefore, the Company could be materially adversely affected (i) if it were unab…" |
| Customer | Alphabet (Google) (GOOGL) | "•Marketing & Distribution Evolution: In order to attract new Customers and reach them where they are performing travel searches today, Southwest expanded into new channels such as Expedia, Priceline, Google Flights, Kaya…" |
| Customer | Visa (V) | "Southwest's Rapid Rewards loyalty program has been designed to drive more revenue by (i) bringing in new Customers, including new Members, as well as new holders of Southwest's co-branded Chase Visa credit cards and Sout…" |
| Partner | Expedia (EXPE) | "The Company has expanded its distribution channels through partnerships with flight meta search engines, including Google Flights, Kayak, Skyscanner, and, in 2025, online travel agencies Expedia and Priceline, to increas…" |
| Partner | T-Mobile (TMUS) | "During 2025, among other things, the Company (i) developed new technology to enable assigned seating, extra legroom seating, and enhanced boarding processes; (ii) introduced free Wi-Fi sponsored by T-Mobile for all Rapid…" |

## Revenue by product line (quarter ended 2026-09-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Passenger | $7.75B | 92.1% | +22.8% |
| — Passenger non-loyalty (part of Passenger) | $6.12B | 72.7% | +25.0% |
| — Passenger ancillary sold separately (part of Passenger) | $898.0M | 10.7% | +46.7% |
| — Passenger loyalty - air transportation (part of Passenger) | $734.0M | 8.7% | -8.8% |
| Other | $621.0M | 7.4% | +4.5% |
| — Loyalty program (part of Other) | $563.0M | 6.7% | +1.1% |
| — Other (part of Other) | $58.0M | 0.7% | +56.8% |
| Freight | $48.0M | 0.6% | +14.3% |
| Total revenue | $8.42B | 100% | — |

## Revenue by region (fiscal year ended 2025-12-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| North America | $27.30B | 97.3% | +2.2% |
| Latin America | $756.0M | 2.7% | -5.3% |
| Total revenue | $28.06B | 100% | — |

## Company outlook (8-K filed 2026-10-21)

- "Guidance and Outlook: The following tables provide guidance for fourth quarter and full-year 2026."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-12-31) | $0.76 | $1.51 | -49.5% | $9.17B | 17 |
| Next quarter (ends 2027-03-31) | $0.43 | $0.68 | -36.8% | $8.26B | 8 |
| Current fiscal year (ends 2026-12-31) | $2.71 | $3.37 | -19.7% | $33.51B | 17 |
| Next fiscal year (ends 2027-12-31) | $4.25 | $4.93 | -13.7% | $35.31B | 23 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 43.5% | ±5.3% |
| 2026-11-06 | 14 | 43.2% | ±7.2% |
| 2026-11-13 | 21 | 42.5% | ±8.7% |
| 2026-11-20 | 28 | 43.2% | ±9.9% |
| 2026-11-27 | 35 | 40.6% | ±10.5% |
| 2026-12-04 | 42 | 40.3% | ±11.3% |
| 2026-12-18 | 56 | 40.6% | ±13.1% |
| 2027-01-15 | 84 | 37.9% | ±14.9% |