- Southwest Airlines (LUV, Financial) is set to revamp its seating and pricing strategy by 2026.
- Analysts foresee a potential revenue boost alongside a recommended "Hold" rating.
- Price targets indicate potential downside, while GF Value suggests slight upside.
Southwest Airlines (NYS: LUV) is gearing up for significant changes by January 2026, planning to introduce assigned seating to complement its existing service offerings. This strategic shift aims to boost revenues, with projections suggesting an increase of $800 million in 2025 and soaring to $1.7 billion by 2026. In addition to this, the airline will bid farewell to its famed "bags fly free" policy, introducing premium seating options and red-eye flights to enhance passenger experience and boost its competitive edge.
Wall Street Analysts Forecast
According to the analysis from 18 financial experts, the one-year average price target for Southwest Airlines Co (LUV, Financial) stands at $30.80. This forecast includes a high estimate of $42.00 and a low of $19.00, suggesting a potential downside of 17.26% from its current trading price of $37.22. For more in-depth analyst outlooks and detailed estimates, visit the Southwest Airlines Co (LUV) Forecast page.
The consensus recommendation from 23 brokerage firms places Southwest Airlines Co (LUV, Financial) at an average rating of 3.0, indicating a "Hold" position. This rating is positioned on a scale where 1.0 represents a Strong Buy and 5.0 indicates a Sell.
Moreover, based on the proprietary GF Value estimation by GuruFocus, the stock's fair value projected over the next year is $37.60. This figure suggests a modest upside of 1.02% from its current market price of $37.22. The GF Value metric is derived from a blend of the stock's historical trading multiples, past business growth, as well as future performance estimates. For further insights, access the Southwest Airlines Co (LUV, Financial) Summary page.
