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Upturn AI SWOT - About
LUV 
Southwest Airlines Company (LUV)
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Upturn Advisory Summary
09/16/2025: LUV (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
24 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $32.51
1 Year Target Price $32.51
| 4 | Strong Buy |
| 2 | Buy |
| 11 | Hold |
| 4 | Sell |
| 3 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -21.33% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/16/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 16.58B USD | Price to earnings Ratio 49.33 | 1Y Target Price 32.51 |
Price to earnings Ratio 49.33 | 1Y Target Price 32.51 | ||
Volume (30-day avg) 24 | Beta 1.19 | 52 Weeks Range 23.55 - 37.75 | Updated Date 09/16/2025 |
52 Weeks Range 23.55 - 37.75 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 2.29% | Basic EPS (TTM) 0.64 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.43% | Operating Margin (TTM) 3.11% |
Management Effectiveness
Return on Assets (TTM) 0.55% | Return on Equity (TTM) 4.25% |
Valuation
Trailing PE 49.33 | Forward PE 12.79 | Enterprise Value 18082175973 | Price to Sales(TTM) 0.6 |
Enterprise Value 18082175973 | Price to Sales(TTM) 0.6 | ||
Enterprise Value to Revenue 0.66 | Enterprise Value to EBITDA 7.84 | Shares Outstanding 525188000 | Shares Floating 467831959 |
Shares Outstanding 525188000 | Shares Floating 467831959 | ||
Percent Insiders 1.16 | Percent Institutions 95.71 |
Upturn AI SWOT
Southwest Airlines Company
Company Overview
History and Background
Southwest Airlines was founded in 1967 as Air Southwest Co. and commenced operations in 1971. It pioneered the low-cost carrier model in the US. Significant milestones include focusing on point-to-point routes, using a single aircraft type (Boeing 737), and maintaining high aircraft utilization.
Core Business Areas
- Passenger Air Transportation: Providing scheduled air transportation for passengers within the United States and near-international markets.
- Freight: Transporting cargo and mail, primarily as a complementary service to passenger flights.
- Ancillary Services: Generating revenue through services such as early boarding (EarlyBird Check-In), upgraded boarding, and baggage fees.
Leadership and Structure
The CEO is Robert Jordan. The organizational structure is a traditional hierarchical model with departments focusing on flight operations, customer service, marketing, finance, and technology.
Top Products and Market Share
Key Offerings
- Passenger Air Transportation: Core service offering flights to over 121 destinations in the United States and near-international markets. Competitors include Delta, United, American, and JetBlue. Southwest's market share is detailed later in the document.
- Rapid Rewards Loyalty Program: A frequent flyer program that rewards customers with points for travel, which can be redeemed for future flights. Competitors include Delta's SkyMiles, United's MileagePlus, and American's AAdvantage.
- Southwest Airlines Vacations: Bundled travel packages including flights, hotels, and rental cars. Competitors include Expedia, Booking.com, and other travel package providers.
Market Dynamics
Industry Overview
The airline industry is highly competitive, cyclical, and sensitive to economic conditions, fuel prices, and geopolitical events. Demand is influenced by consumer spending, business travel, and tourism.
Positioning
Southwest Airlines is positioned as a low-cost carrier focusing on point-to-point routes, friendly service, and a simplified fare structure. Its competitive advantages include a strong brand reputation and loyal customer base.
Total Addressable Market (TAM)
The global airline market is valued at over $800 billion. Southwest Airlines is positioned to capture a portion of the US domestic market and near-international markets, reflecting its focus on low-cost travel. IATA expects 4.7 billion people to travel in 2024.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Loyal customer base
- Low-cost operating model
- High employee morale
- Point-to-point route network
Weaknesses
- Reliance on Boeing 737 aircraft
- Limited international presence
- IT infrastructure limitations
- Exposure to fuel price volatility
- Unionized workforce can cause challenges
Opportunities
- Expanding into new markets
- Increasing ancillary revenue streams
- Modernizing IT infrastructure
- Enhancing customer experience through technology
- Strategic partnerships with other airlines
Threats
- Economic downturns
- Fluctuations in fuel prices
- Increased competition from other low-cost carriers
- Regulatory changes and compliance costs
- Geopolitical instability
Competitors and Market Share
Key Competitors
- DAL
- UAL
- AAL
- JBLU
Competitive Landscape
Southwest Airlines competes effectively through its low-cost structure and point-to-point network. Competitors like Delta, United, and American operate hub-and-spoke systems, while JetBlue also focuses on low fares but offers a more premium product.
Major Acquisitions
Morris Air
- Year: 1993
- Acquisition Price (USD millions): 129
- Strategic Rationale: Expanded Southwest's route network into the Mountain West region.
Growth Trajectory and Initiatives
Historical Growth: Southwest Airlines has historically grown through organic expansion and strategic route development, focusing on underserved markets and maintaining a cost-effective operation.
Future Projections: Analysts project continued revenue growth. Expansion in secondary cities and increased ancillary revenue are expected to drive this growth. Future EPS is expected to average 10% yearly.
Recent Initiatives: Recent initiatives include upgrading the in-flight experience (wifi and entertainment), expanding the route network into Hawaii, and focusing on IT infrastructure improvements.
Summary
Southwest Airlines has a solid business model and a reputable brand image, but faces challenges relating to economic conditions, competition, and rising fuel prices. Its focus on efficiency and its route network is working well and it has opportunities to expand into new markets, increase revenue streams, and modernize IT. The company needs to be vigilant against volatile fuel prices, competitors, and union negotiations.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (SEC), Market Research Reports, Analyst Estimates, IATA
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Southwest Airlines Company
Exchange NYSE | Headquaters Dallas, TX, United States | ||
IPO Launch date 1980-01-02 | President, CEO & Vice Chairman of the Board Mr. Robert E. Jordan | ||
Sector Industrials | Industry Airlines | Full time employees 72242 | Website https://www.southwest.com |
Full time employees 72242 | Website https://www.southwest.com | ||
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2024, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
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