Southwest Airlines (LUV)
NYSEIndustrialsAirlines, Airports & Air ServicesSnapshot 2026-11-05
$44.44-4.27%
Close 2026-11-05 · 1-day change
NYSEIndustrialsAirlines, Airports & Air ServicesSnapshot 2026-11-05
QuarterlyIQ Insights · LUV
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-11-05.
The screen ranks LUV against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 61% for the rest of the cohort, n=9285).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 2 guided quarters · 46.8% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
“Our focus now turns to unlocking the Company's full earnings potential by continuing to optimize our network, product offering, and pricing, while continuing to strengthen financial performance.
Stated in 3 of 8 supplied quarters. Management reported: “Demand for our new product offerings drove record first quarter revenues, double‑digit unit revenue growth, and significant improvement in earnings and margins.” ““Our focus now turns to unlocking the Company's full earnings potential by continuing to optimize our network, product offering, and pricing, while continuing to strengthen financial performance.” Revenue was $8.422 billion in 2026-Q3.
““Our focus now turns to unlocking the Company's full earnings potential by continuing to optimize our network, product offering, and pricing, while continuing to strengthen financial performance.”
“Demand continues to be strong, and we remain focused on controlling what we can control by managing costs, optimizing revenue initiatives, and directing capacity toward higher‑return opportunities.”
“Last year we implemented the most ambitious transformation in Company history, including bag fees, basic economy fares, assigned and extra legroom seating, Rapid Rewards ® program optimization, onlin…”
Demand continues to be strong, and we remain focused on controlling what we can control by managing costs, optimizing revenue initiatives, and directing capacity toward higher‑return opportunities.
Stated in 5 of 8 supplied quarters. Management reported: ““First quarter 2026 marked a turning point for Southwest, as our broad set of commercial, operational, and cost initiatives is now translating into terrific results.” “4 The Company continues to expect to achieve its $370 million cost reduction target this year.”
Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.
Stated in 4 of 8 supplied quarters. Management reported: “Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.” “4Q 2025 Estimation ASMs (a), year-over-year Up ~6% RASM (b), year-over-year Up 1% to 3% CASM-X (c), year-over-year 1,3 Up 1.5% to 2.5% Fuel cost per gallon 4 $2.20 to $2.30 2025 Estimation EBIT 2 (millions) $600 to $800 2025 Target 2026 Target EBIT 2 contribution from initiatives (billions) ~$1.8 ~$4.3 (a) Available seat miles ("ASMs" or "capacity").”
Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.
Stated in 3 of 8 supplied quarters. Management reported: “Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.” “Moving forward, the Company will target liquidity of approximately $4.5 billion, comprised of cash and cash equivalents, short-term investments, and a revolving credit line, which was recently increased to $1.5 billion.”
Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.
Stated in 4 of 8 supplied quarters. Management reported: “Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.” “The Company's Board of Directors recently approved a $2.0 billion share repurchase authorization expected to be completed over a period of up to two years, which is supported by this framework and expected ramp up in initiative benefit.”
Over the trailing year it converted 2.62x of net income into operating cash flow. Historically, Industrials names rated robust grew net income 59% of the time over the next year (vs 55% for the rest of the cohort, n=5006).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
23 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated volatile grew net income 52% of the time over the next year (vs 59% for the rest of the cohort, n=6547).
Not investment advice. As of 2026-11-05.
“Demand continues to be strong, and we remain focused on controlling what we can control by managing costs, optimizing revenue initiatives, and directing capacity toward higher‑return opportunities.”
“4 The Company continues to expect to achieve its $370 million cost reduction target this year.”
“The Company continues to expect to achieve its $370 million cost reduction target this year.”
“The Company remains focused on driving efficiencies to offset overall inflationary cost pressures and achieve its accelerated cost initiative targets.”
“The Company is urgently working to accelerate and exceed the $500 million cost initiative announced at its 2024 Investor Day to help mitigate cost inflation by minimizing hiring, optimizing schedulin…”
“Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.”
“Key Initiative Highlights: • Launched the sale of assigned and extra legroom seating, for travel beginning January 27, 2026, with bookings in line with expectations • Announced free WiFi sponsored by…”
“Key Initiative Highlights: • Introduced bag fees with initial financial benefit exceeding expectations • Implemented basic economy product, laying the foundation for future product differentiation •…”
“We expect to introduce basic economy and bag fees for most fare products next month and remain on track to begin selling assigned and extra legroom seats in third quarter 2025 for operation beginning…”
“Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.”
“Moving forward, the Company will target liquidity of approximately $4.5 billion, comprised of cash and cash equivalents, short-term investments, and a revolving credit line, which was recently increa…”
“The Company continues to plan for annual capacity growth through 2027 in the 1 percent to 2 percent range, year-over-year.”
“Thomas, U.S. Virgin Islands and Knoxville, Tennessee, two of five new market entries in 2026 2 Guidance and Outlook: The following table provides guidance for second quarter 2026.”
“Liquidity and Capital Deployment: • The Company ended third quarter 2025 with $3.0 billion in cash and cash equivalents and short-term investments, and a fully available revolving credit line of $1.5…”
“The Company's Board of Directors recently approved a $2.0 billion share repurchase authorization expected to be completed over a period of up to two years, which is supported by this framework and ex…”
“Liquidity and Capital Deployment: • The Company remains committed to a strong and efficient balance sheet with an investment-grade credit rating • The Company ended first quarter 2025 with $8.3 billi…”