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Upturn AI SWOT - About
LUV 
Southwest Airlines Company (LUV)
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Upturn Advisory Summary
08/28/2025: 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 $31.96
1 Year Target Price $31.96
| 4 | Strong Buy |
| 2 | Buy |
| 11 | Hold |
| 4 | Sell |
| 3 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -21.16% | 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 08/28/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.28B USD | Price to earnings Ratio 51.41 | 1Y Target Price 31.96 |
Price to earnings Ratio 51.41 | 1Y Target Price 31.96 | ||
Volume (30-day avg) 24 | Beta 1.25 | 52 Weeks Range 23.68 - 37.96 | Updated Date 08/29/2025 |
52 Weeks Range 23.68 - 37.96 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 2.18% | 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 51.41 | Forward PE 28.65 | Enterprise Value 18822690642 | Price to Sales(TTM) 0.63 |
Enterprise Value 18822690642 | Price to Sales(TTM) 0.63 | ||
Enterprise Value to Revenue 0.69 | Enterprise Value to EBITDA 8.16 | Shares Outstanding 525188000 | Shares Floating 467831959 |
Shares Outstanding 525188000 | Shares Floating 467831959 | ||
Percent Insiders 1.16 | Percent Institutions 95.76 |
Upturn AI SWOT
Southwest Airlines Company
Company Overview
History and Background
Southwest Airlines was founded in 1967 as Air Southwest Co. and began operating in 1971. Initially serving Texas, it expanded nationally, becoming known for its low-cost, no-frills service and unique operational model.
Core Business Areas
- Passenger Air Transportation: Southwest's primary business is providing passenger air transportation services within the United States and to near-international destinations.
- Freight Services: Southwest Cargo provides air freight and shipping services.
- Ancillary Revenue: This includes revenue from EarlyBird Check-In, upgraded boarding options, and other services.
Leadership and Structure
Robert Jordan is the current CEO. The company operates with a fairly flat organizational structure, emphasizing teamwork and employee empowerment.
Top Products and Market Share
Key Offerings
- Main Cabin Flights: Core service offering low-cost domestic and near-international flights. Southwest held approximately 17.6% of the US domestic market share in 2023 (preliminary estimate). Competitors include Delta, United, American Airlines, and Spirit/Frontier.
- Southwest Rapid Rewards: Loyalty program offering points for flights and other purchases. User numbers are proprietary but significant. Competitors include SkyMiles (Delta), MileagePlus (United), and AAdvantage (American).
- EarlyBird Check-In: Ancillary service that guarantees automatic check-in and boarding position. Revenue is bundled within overall ancillary revenue figures. Competitors are other airlines that offer seat selection and boarding priority perks.
Market Dynamics
Industry Overview
The airline industry is highly competitive, cyclical, and sensitive to economic conditions, fuel prices, and geopolitical events. It is also capital-intensive and subject to extensive regulation.
Positioning
Southwest is positioned as a low-cost carrier (LCC) with a strong focus on customer service and employee engagement. Its competitive advantages include its point-to-point route network, efficient operations, and strong brand reputation.
Total Addressable Market (TAM)
The global airline market is estimated at $744 Billion in 2024. Southwest is positioned to grow its existing market share while capitalizing on the growing travel market with its low-cost approach.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Low-cost operating model
- High employee morale and engagement
- Point-to-point route network
- Strong financial position
Weaknesses
- Limited international presence
- Reliance on a single aircraft type (Boeing 737)
- Vulnerability to disruptions and delays due to weather events
Opportunities
- Expansion into new markets and regions
- Increased focus on ancillary revenue streams
- Strategic partnerships with other airlines
- Technological innovation to improve efficiency and customer experience
Threats
- Fluctuations in fuel prices
- Intense competition from other airlines
- Economic downturns reducing travel demand
- Geopolitical instability and security threats
- Regulatory changes and compliance costs
Competitors and Market Share
Key Competitors
- Delta Air Lines (DAL)
- United Airlines (UAL)
- American Airlines (AAL)
- JetBlue Airways (JBLU)
- Spirit Airlines (SAVE)
- Frontier Group Holdings (ULCC)
Competitive Landscape
Southwest's competitive advantages include its strong brand, low-cost structure, and efficient operations. Disadvantages include limited international presence and reliance on a single aircraft type.
Growth Trajectory and Initiatives
Historical Growth: Southwest has experienced significant growth over the past decades, driven by its low-cost model and expansion into new markets.
Future Projections: Future growth projections vary depending on analyst estimates and market conditions.
Recent Initiatives: Recent initiatives include fleet modernization, expansion of its route network, and investment in technology to improve customer experience.
Summary
Southwest Airlines is a well-established low-cost carrier with a strong brand and loyal customer base. Its efficient operations and focus on customer service have contributed to its success. Challenges include fluctuating fuel prices, competition, and potential operational disruptions. Southwest is positioned well to continue expanding its market share if it addresses the above-mentioned challenges.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It should not be considered financial advice.
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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