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.
Southwest Airlines' stock was riding a wave of renewed optimism about U.S. airlines in the new year, including a prediction from Barclays that the once no-frills air carrier will be more profitable in 2026.
Southwest Airlines (LUV) stock has reached day 10 in a consecutive streak of gains, resulting in a total increase of 20% over this timeframe. The company has added approximately $2.8 billion in value during the past 10 days, bringing its current market capitalization to around $22 billion.
Southwest Airlines said on Friday it would open a crew base at Austin-Bergstrom International Airport in March 2026, creating more than 2,000 jobs as the carrier looks to expand its footprint in fast-growing central Texas.
Southwest Airlines (LUV) stock reached day 8 of a steady run of daily gains, with cumulative returns over this stretch totaling a 17% increase. The company has added roughly $2.4 Bil in value during these 8 days, bringing its current market capitalization to about $20 Bil.
Airlines and credit card companies have opened dozens of airport lounges in recent years, a perk of elite frequent flyer status or higher-fee credit cards. In October, Southwest won approval for an airport lounge at Honolulu's Daniel K.
The carrier won't have to pay $11 million related to its 2022 meltdown during the holiday season.
The Trump administration said it will credit Southwest Airlines with $11 million from its fine over its 2022 holiday meltdown that stranded about 2 million customers. The Transportation Department in late 2023 ordered Southwest to pay a $140 million civil penalty for the holiday chaos the previous year.
Southwest Airlines cut its earnings forecast on a demand dip during the federal government shutdown. Southwest said it expects 2025 earnings before interest and taxes of about $500 million, down from a previous forecast of $600 million to $800 million, citing lower demand during the shutdown and higher fuel prices.
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