Southwest Airlines Co. (LUV)
Southwest Airlines is a major American carrier famous for its low-cost, no-frills approach to flying across the United States.
Is Southwest Airlines Co. a good stock for a UK beginner?
The honest version: Southwest Airlines is a major American carrier famous for its low-cost, no-frills approach to flying across the United States.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Expansion into new, profitable routes and fleet modernisation.
Persistent high costs and intense competition erode margins.
What does Southwest Airlines Co. do?
Southwest makes its money by flying passengers across North America, focusing on a simple, point-to-point route network that keeps planes in the air more often. Unlike many competitors, they are well-known for their 'bags fly free' policy and a single type of aircraft to keep maintenance costs down. A lot rides on how they absorb rising fuel and labour costs while keeping fares competitive enough to fill their seats.
On our factor screen it looks strongest on value and growth, and weakest on quality.
- ✓Pays a dividend - about 1.6% a year
- ✓Growing - revenue up about 16% over the year
- !Thin profits - turns only about 3% of sales into profit
- Value screens high (74/100)
- Strong brand recognition in the US market
- Efficient business model using a single aircraft type
- Consistent history of paying a dividend to shareholders
- Quality screens low (29/100)
- Operational disruptions like bad weather or technical issues
- Labour disputes or rising wage demands
- Economic downturns reducing discretionary travel spending
What do Southwest Airlines Co.'s numbers mean?
How much money does Southwest Airlines Co. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Southwest Airlines Co. pay a dividend?
Yes - Southwest Airlines Co. currently pays a dividend of about 1.6% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Southwest Airlines Co. report earnings, and how did recent quarters go?
Southwest Airlines Co. is next scheduled to report on about 2026-10-21 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-22 | $0.52 | $0.94 | Beat +80% |
| 2026-04-22 | $0.47 | $0.45 | Missed -5% |
| 2026-01-28 | $0.57 | $0.58 | Beat +2% |
| 2025-10-22 | $-0.04 | $0.11 | Beat +401% |
| 2025-07-23 | $0.51 | $0.43 | Missed -16% |
| 2025-04-23 | $-0.19 | $-0.13 | Beat +32% |
Across the last 6 quarters here, Southwest Airlines Co. came in ahead of what analysts expected 4 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Industrials
Space Exploration Technologies Corp.
GE Vernova
Global Payments Inc.
Delta Air Lines
Vertiv Holdings Co
Howmet Aerospace Inc.
EMCOR Group, Inc.
Masco CorporationWhat are the scenarios for Southwest Airlines Co.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Southwest Airlines Co.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong brand recognition in the US market
- Efficient business model using a single aircraft type
- Consistent history of paying a dividend to shareholders
- Very thin profit margins leave little room for error
- Highly sensitive to the price of jet fuel
- Significant competition from other major airlines
- Operational disruptions like bad weather or technical issues
- Labour disputes or rising wage demands
- Economic downturns reducing discretionary travel spending
The write-up's own warning lights — if these start happening, the case above changes.
- A permanent shift in business travel habits away from flying
- A major, long-term increase in fuel costs that cannot be passed to customers
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.