Southwest Airlines (NYSE:LUV) Issues Quarterly Earnings Results

Southwest Airlines (NYSE:LUV) posted its earnings results on Wednesday. The airline reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.57 by $0.09, FiscalAI reports. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.07%. The company had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.25 billion. During the same quarter in the previous year, the company posted $0.11 earnings per share. Southwest Airlines’s quarterly revenue was up 21.2% compared to the same quarter last year.

Southwest Airlines Stock Performance

Shares of LUV opened at $41.91 on Friday. Southwest Airlines has a 1 year low of $29.26 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The stock’s fifty day moving average price is $40.62 and its two-hundred day moving average price is $42.89. The firm has a market cap of $20.51 billion, a PE ratio of 25.71, a PEG ratio of 1.06 and a beta of 1.16.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were paid a $0.18 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. Southwest Airlines’s payout ratio is presently 44.17%.

Southwest Airlines News Summary

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: Southwest reported third-quarter adjusted EPS of $0.66, ahead of the approximately $0.57 analyst consensus, while revenue reached a record $8.42 billion, up 21.2% year over year. Passenger revenue, yields and revenue per available seat mile also set records. US airlines favor higher fares over fuller planes as fuel costs squeeze profits
• Positive Sentiment: Improved pricing and strong travel demand helped expand the operating margin to 4.5% from 0.5% a year earlier, offsetting much of the cost pressure. Management also forecast fourth-quarter unit revenue growth of 19% to 21%, supporting expectations for continued momentum. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: The earnings report also lifted sentiment across airline stocks, as Southwest demonstrated that higher fares and ancillary revenue can currently counteract elevated operating costs. Airline Stocks Rise After Southwest’s Strong Q3 Results
• Neutral Sentiment: Southwest’s liquidity remained substantial at approximately $5.6 billion, while the stock’s valuation and recovery prospects are attracting investor interest. However, analysts remain divided on the pace and durability of the turnaround. Is It Too Late to Buy Southwest Airlines Co (LUV) After 5.4% Rally?
• Negative Sentiment: Southwest reduced its 2026 adjusted EPS outlook to $2.60–$2.85 because fuel prices have surged. Fuel expense increased by $821 million year over year, and CEO Bob Jordan said the company is planning for elevated fuel costs to persist into 2027. Southwest Airlines cuts 2026 profit forecast as fuel costs spike

Analyst Ratings Changes

LUV has been the subject of several analyst reports. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and boosted their target price for the company from $35.00 to $40.00 in a research report on Friday, September 18th. Barclays reduced their price objective on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Bank of America boosted their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 1st. Susquehanna dropped their price target on Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. Finally, The Goldman Sachs Group boosted their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research report on Thursday, July 2nd. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $47.41.

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.