Southwest Airlines Aktie News

Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m.

Southwest Airlines delivered strong 2026 guidance on the back of its new fees for things like extra legroom and selecting your own seat.

Southwest Airlines Co. (LUV) Q4 2025 Earnings Call Transcript

Southwest Airlines' move to end open seating—a feature in place since the 1970s—came into effect this week, and while some loyalists and long-time customers have lamented the change, investors have given it their emphatic approval.

Shares of Southwest Airlines rose more than 15% Thursday as investors cheered the airline's new era of assigned seating — and the opportunity for upsells.

Southwest Airlines Co (NYSE:LUV) shares added more than 6% after the carrier issued profit guidance for 2026 that significantly exceeded Wall Street expectations. The Dallas-based airline said it expects to earn at least $4 per share in 2026, well above analysts' consensus estimate of $3.19 and more than triple its adjusted earnings in 2025.

The airline says its new economic model is critical to catch industry rivals, even if passengers have to pay more.

Southwest Airlines is rated a sell due to valuation concerns, execution risks, and opportunity costs versus peers like Alaska Air Group. LUV's 2026 guidance targets adjusted EPS of at least $4, but this is seen as potentially optimistic given industry risks and operational uncertainties. Southwest's strong balance sheet, $2.6B in share buybacks, and cost reduction initiatives are positives, but...