A variety of factors are impacting Southwest Airlines. The company's profits were down 42% this year but it remained a top U.S. airline stock. The stock recently soared past other U.S. airline stocks despite customer pushback, and the short interest is also down by 19.6% in December. There has been an overall rebound in share price, with a 17% rebound in one month and a sharp 3-month rebound. Southwest Airlines had an 8-day and 10-day winning streak which saw its stock surge 17% and 20%, respectively. However, the airline is cutting full-year profit hopes leading to an 11% drop in shares.
Analysts are responding to these changes with upgrades and there is optimism about the company's potential. Southwest is also planning a strategic shift, with proposals such as new fees, a partnership with Turkish Airlines, a global expansion strategy, and a new WiFi deal with T-Mobile boosting its valuation. However, Southwest predicts lower profits for 2025 and rising fuel costs are also impacting its guidance. Despite these challenges, it remains a strong value stock and has resumed profit-making.
Southwest Airlines LUV News Analytics from Wed, 23 Apr 2025 07:00:00 GMT to Sat, 03 Jan 2026 16:58:19 GMT - Rating 6 - Innovation 7 - Information 8 - Rumor -2
