Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
The chart shows the growth of an initial investment of $10,000 in Southwest Airlines Co., comparing it to the performance of the S&P 500 index.
All prices have been adjusted for splits and dividends.
Southwest Airlines Co. (LUV) has returned -9.42% so far this year and 49.86% over the past 12 months. Looking at the last ten years, LUV has achieved an annualized return of -1.73%, underperforming the Benchmark (SPY), which averaged 12.23% per year.
The table below presents the monthly returns of Southwest Airlines Co. (LUV) with color gradation from worst to best to easily spot seasonal factors.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 14.48% | 1.00% | -21.73% | 0.37% | ||||||||
| 2025 | -8.68% | 2.95% | 9.99% | -14.55% | 18.45% | -3.02% | -3.97% | 8.65% | -1.27% | -5.28% | 15.42% | 19.69% |
| 2024 | 4.51% | 13.89% | -14.75% | -11.50% | 3.27% | 4.95% | -5.94% | 7.11% | 0.41% | 3.49% | 5.27% | 3.86% |
| 2023 | 5.77% | -5.41% | -3.01% | -5.55% | -1.39% | 20.34% | -5.19% | -6.67% | -14.79% | -18.00% | 15.81% | 12.77% |
| 2022 | 3.68% | -2.67% | 5.53% | 1.74% | -1.16% | -22.16% | 5.62% | -3.42% | -15.09% | 17.87% | 8.33% | -15.82% |
| 2021 | -5.46% | 31.10% | 2.54% | 2.46% | -2.46% | -14.29% | -5.75% | -1.62% | 2.86% | -12.07% | -6.21% | -4.78% |
| 2020 | 1.10% | -16.64% | -23.49% | -8.22% | 5.25% | 5.82% | -12.47% | 22.21% | 1.79% | 4.14% | 16.05% | 0.13% |
| 2019 | 23.26% | -1.67% | -7.76% | 3.75% | -12.82% | 6.68% | 0.64% | 1.53% | 4.09% | 3.39% | 2.31% | -6.28% |
| 2018 | -7.75% | -4.41% | -0.87% | -7.62% | -3.26% | -0.63% | 14.87% | 5.47% | 1.66% | -21.58% | 10.77% | -15.34% |
| 2017 | 3.79% | 9.99% | -8.06% | 4.65% | 6.32% | 3.26% | -11.21% | -6.69% | 6.93% | -3.86% | 12.29% | 8.16% |
| 2016 | 0.47% | -4.82% | -7.74% | -5.73% | -0.75% | 5.45% | 3.09% | 16.58% | 7.51% |
The charts below present risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and compare them to a Benchmark (SPY). These indicators evaluate an investment's returns against its associated risks.
The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.
These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns.
The chart below shows the rolling Sharpe ratio of LUV compared to the benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.
The current Southwest Airlines Co. volatility is 3.38%, representing the standart deviation of percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
The Drawdowns chart displays portfolio losses from any high point along the way. It shows the maximum percentage drop from a peak to a trough over a specified period, indicating the risk of significant losses.
Although chart shows positive values, it represents the percentage drop from the peak, so a value of 10% means the portfolio has dropped 10% from its highest point.
The income statement provides a summary of a company's revenues, expenses, and profits over a specific period. It shows how much money the company earned (revenues) and how much it spent (expenses), leading to the net income or profit. This statement is crucial for understanding a company's financial performance and profitability.
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities And Equity (USD) | 29.06B | 33.75B | 36.49B | 35.37B | 36.32B | 34.59B | 25.90B | 26.24B | 25.11B | 23.29B | 21.31B | 20.20B | 19.35B | 18.60B | 18.07B |
| Equity Attributable To Parent (USD) | 7.98B | 10.35B | 10.52B | 10.69B | 10.41B | 8.88B | 9.83B | 9.85B | 10.43B | 8.44B | 7.36B | 6.78B | 7.34B | 6.99B | 6.88B |
| Equity Attributable To Noncontrolling Interest (USD) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity (USD) | 7.98B | 10.35B | 10.52B | 10.69B | 10.41B | 8.88B | 9.83B | 9.85B | 10.43B | 8.44B | 7.36B | 6.78B | 7.34B | 6.99B | 6.88B |
| Other Non-current Liabilities (USD) | 5.23B | 4.43B | 5.70B | 6.21B | - | - | - | - | - | - | - | - | - | - | - |
| Long-term Debt (USD) | 4.93B | 6.70B | 8.01B | 8.10B | - | - | - | - | - | - | - | - | - | - | - |
| Noncurrent Liabilities (USD) | 10.16B | 11.12B | 13.72B | 14.30B | 16.74B | 18.21B | 7.11B | 8.49B | 7.78B | 8.00B | 6.55B | 7.50B | 6.33B | 6.95B | 6.66B |
| Other Current Liabilities (USD) | 8.93B | 10.46B | 10.39B | 8.37B | 7.88B | 6.58B | 7.38B | 6.49B | 5.59B | 5.67B | 6.22B | 4.72B | 4.43B | 3.54B | 3.48B |
| Accounts Payable (USD) | 1.99B | 1.82B | 1.86B | 2.00B | 1.28B | 931.00M | 1.57B | 1.42B | 1.32B | 1.18B | 1.19B | 1.20B | 1.25B | 1.11B | 1.06B |
| Current Liabilities (USD) | 10.92B | 12.28B | 12.26B | 10.38B | 9.16B | 7.51B | 8.95B | 7.91B | 6.91B | 6.84B | 7.41B | 5.92B | 5.68B | 4.65B | 4.53B |
| Liabilities (USD) | 21.08B | 23.40B | 25.97B | 24.68B | 25.91B | 25.71B | 16.06B | 16.39B | 14.68B | 14.85B | 13.95B | 13.43B | 12.01B | 11.60B | 11.19B |
| Other Non-current Assets (USD) | 2.88B | 22.18B | 22.24B | 20.27B | 17.99B | 3.29B | 2.60B | 1.29B | 1.34B | 1.32B | 1.22B | 1.14B | 1.50B | 1.60B | 1.60B |
| Intangible Assets (USD) | 296.00M | 300.00M | 296.00M | 296.00M | 295.00M | 295.00M | 296.00M | 400.00M | 413.00M | 426.00M | 464.00M | 363.00M | - | - | - |
| Fixed Assets (USD) | 20.25B | - | - | - | - | 15.83B | 17.03B | 19.53B | 18.54B | 17.04B | 15.60B | 14.29B | 13.39B | 12.77B | 12.13B |
| Noncurrent Assets (USD) | 23.42B | 22.48B | 22.53B | 20.56B | 18.28B | 19.42B | 19.92B | 21.22B | 20.30B | 18.79B | 17.29B | 15.80B | 14.89B | 14.37B | 13.72B |
| Other Current Assets (USD) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 4.05B |
| Accounts Receivable (USD) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 299.00M |
| Current Assets (USD) | 5.65B | 11.27B | 13.96B | 14.81B | 18.04B | 15.17B | 5.97B | 5.03B | 4.82B | 4.50B | 4.02B | 4.40B | 4.46B | 4.23B | 4.35B |
| Assets (USD) | 29.06B | 33.75B | 36.49B | 35.37B | 36.32B | 34.59B | 25.90B | 26.24B | 25.11B | 23.29B | 21.31B | 20.20B | 19.35B | 18.60B | 18.07B |
President Trump escalated threats against Iran, announcing intensified bombing campaigns over the next 2-3 weeks and threatening to destroy Iranian infrastructure. WTI crude surged 9% to $110/barrel, with the Strait of Hormuz remaining effectively closed. Airlines and cruise lines face significant margin pressure as jet fuel and diesel costs spike, with five travel stocks experiencing the steepest declines.
President Trump has sent Iran a 15-point peace plan addressing nuclear programs and maritime routes, with prediction markets showing a 48% probability of a U.S.-Iran ceasefire by April 30. Ten Russell 1000 stocks down 17-33% since the war began are positioned for potential recovery if peace talks succeed. War-battered sectors including airlines, mining, and cruise lines staged sharp premarket rebounds on the diplomatic developments.
As US-Iran ceasefire talks gain traction, oil prices have plunged, creating a multi-sector tailwind. Three stocks are positioned to benefit: Southwest Airlines from lower fuel costs, Caterpillar from infrastructure demand momentum, and Norwegian Cruise Line from reduced fuel expenses and renewed travel demand.
Markets rallied sharply on Monday following President Trump's announcement of a five-day halt to U.S. military strikes on Iranian energy infrastructure and claims of productive peace talks, despite Iran's swift denial of any negotiations. The S&P 500 gained 1.64%, with stocks hardest hit by the Middle East conflict—particularly cruise operators, airlines, and homebuilders—experiencing the strongest rebounds. Gold miners and construction-related ETFs also performed well amid the relief rally.
President Trump announced a 5-day pause on U.S. strikes against Iranian energy infrastructure following 'productive conversations' with Tehran, causing oil prices to plunge 8% and stock futures to surge. West Texas Intermediate crude fell to $90.10/barrel while Brent dropped to $103.31. Travel and airline stocks rallied sharply as fuel-sensitive sectors benefited from lower oil prices. The move raises questions about whether the 'TACO trade' (Trump Always Chickens Out) pattern is repeating.
Oil prices surging to $100+ per barrel due to Iran war tensions have severely impacted airline stocks, with major carriers like Delta, United, and American dropping 15-20% as fuel costs threaten 2026 earnings. Airlines with minimal fuel hedging face significant margin pressure, forcing fare increases and capacity cuts. The sector is now viewed as a geopolitical risk proxy.
West Texas Intermediate crude has surged to $100+ per barrel due to Middle East tensions and supply disruptions, creating significant headwinds for airline stocks. With jet fuel being a major variable cost and limited ability to pass costs to consumers during weak demand, airlines face margin pressure. Veteran trader Peter Brandt warns the sector is headed for a 'world of hurt.' American Airlines has dropped sharply, and analyst downgrades are mounting as 2026 earnings guidance becomes outdated.
Joby Aviation's stock has fallen 25% year-to-date and is trading 50% below 2025 highs at $9.56. While the lower price may seem attractive, the company's $9.4 billion market cap is still higher than established competitors like American Airlines, Lyft, and TransMedics despite having no commercial operations yet. The analyst recommends caution, noting the stock appears priced for perfection given Joby's unproven eVTOL air taxi business model and pending FAA certification.
Global airlines are setting revenue records as international travel rebounds to pre-pandemic growth levels. The UN reports 1.52 billion international tourists traveled in 2025, with the industry contributing a record $11.7 trillion to the global economy. Major U.S. carriers including Delta, United, American, and Southwest all reported record revenues. However, rising oil prices and geopolitical tensions with Iran pose near-term risks to airline margins, while a 28% decline in Canadian visits to the U.S. reflects political tensions.
Kiltearn Partners LLP fully exited its position in Sealed Air Corporation by selling 335,500 shares in Q4, according to an SEC filing. The position had represented 2.4% of the fund's assets under management. Despite Sealed Air's strong 26.3% return over the past year, the company faces headwinds with Q3 sales declining 1% and management expecting 2-3% sales decline for the full year.