Market Movers

Southwest Airlines Co.’s Stock Price Soars to $32.66, Marking a Robust 5.53% Increase

Southwest Airlines Co. (LUV)

32.66 USD +1.71 (+5.53%) Volume: 13.84M

“Southwest Airlines Co.’s stock price sees a promising rise to 32.66 USD, gaining a robust +5.53% in the recent trading session with a trading volume of 13.84M. Despite a slight YTD decrease of -2.86%, the airline’s stock continues to showcase resilience in the market.”


Latest developments on Southwest Airlines Co.

Southwest Airlines Co has made significant changes to its baggage policy, ending the long-standing tradition of free checked bags in a move to boost profits by more than $400 million. The airline announced that it will start charging $35 for a checked bag, a decision that has sparked fury among passengers. This strategic shift comes as Southwest Airlines faces mounting profit pressures, leading to an upgrade from Jefferies despite the flurry of changes. The airline’s stock price is on the rise as it implements new fees to stay competitive in the market. Southwest Airlines is set to charge at least $35 for checked bags starting today, marking the end of an era for the beloved ‘Bags Fly Free’ policy that has been in place for over 50 years.


Southwest Airlines Co. on Smartkarma

Analysts at Baptista Research have been closely monitoring Southwest Airlines Co‘s performance and strategic initiatives. In their latest research report titled “Southwest Airlines: Expansion into New Distribution Channels Like Expedia & Google Flights To Boost Customer Base & Revenue Over Time!”, the analysts highlight the company’s mixed performance in the first quarter of 2025. Despite facing challenges due to the macroeconomic environment, Southwest Airlines demonstrated progress in revenue strategy transformation, with record operating revenues of $6.4 billion driven by key initiatives like amendments to their agreement with Chase and expanded distribution channels like Expedia.

Another report by Baptista Research titled “Southwest Airlines Is Facing Turbulence: How Trump’s Tariffs Are Disrupting Its Turnaround Plan!” sheds light on the company’s aggressive transformation efforts amidst a challenging environment. The low-cost carrier is implementing changes such as the introduction of bag fees and basic economy, cost-cutting measures, and executive reshuffling to stay competitive. With the outlook for Southwest Airlines becoming murkier, analysts are closely evaluating the impact of these strategic moves on the company’s future performance and valuation.


A look at Southwest Airlines Co. Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth3
Resilience3
Momentum3
OVERALL SMART SCORE3.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Southwest Airlines Co. is showing a strong performance in terms of dividends, scoring a perfect 5 on the Smartkarma Smart Scores. This indicates that the company is committed to rewarding its shareholders. Additionally, Southwest Airlines Co. scores well in terms of value, with a score of 4, suggesting that the company may be undervalued compared to its competitors. However, the company’s growth, resilience, and momentum scores are all average, indicating that there may be room for improvement in these areas in the long term.

Overall, Southwest Airlines Co. is a domestic airline that focuses on short-haul flights within the United States. With a solid dividend score and a respectable value score, the company seems to be in a good position to continue providing reliable service to its customers. However, there is room for growth, resilience, and momentum improvement, which could impact the company’s long-term outlook. Investors may want to keep an eye on how Southwest Airlines Co. addresses these areas in the future.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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