Southwest Airlines ended its open-seating policy after 54 years and has started assigning seats to passengers. The airline's executives say customers sought the change and touted the financial benefits to investors.
Get a deeper insight into the potential performance of Southwest (LUV) for the quarter ended December 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
Let's assess the factors that are likely to have influenced LUV's fourth-quarter performance.
Southwest (LUV) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Southwest Airlines Co. remains expensive despite anticipated profitability improvements and upcoming Q4 results. Management expects modest capacity growth, incremental EBIT from assigned seating, and potential fuel price relief in 2026. EPS projections align with mid-single digit revenue growth and margin expansion, but fair value is estimated at $27.40—below current levels.
Southwest Airlines (LUV) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Investors looking for ways to find stocks that are set to beat quarterly earnings estimates should check out the Zacks Earnings ESP.
Here is how Southwest Airlines (LUV) and Knot Offshore (KNOP) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Airline stock Southwest Airlines Co (NYSE:LUV) was last seen up 2.8% at $44.15, trading at fresh three-year highs after a rare double-upgrade from J.P.
USA air travelers are well aware that changes are going on at Southwest Airlines. It's old news – at least on the surface.
Southwest Airlines profits are down this year, but its stock has gained more than any other airline this year. The carrier expects its initiatives like baggage fees and assigned seating to bear fruit next year.