Southwest Airlines (NYSE:LUV) Bolsa

Southwest Airlines

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 in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories including a basic economy class that will more directly compete with other airlines' offerings.

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Southwest Airlines cerró el verano con un récord de vuelos completados sin cancelaciones. Acciones suben antes de la apertura del mercado.

¿Qué está sucediendo con las acciones de Southwest Airlines antes de la apertura del mercado el miércoles?

Southwest Airlines Co

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Shares of companies within the broader industrial sector are trading higher, supported by broad market strength, after better-than-expected nonfarm payrolls data eased concerns about an imminent economic slowdown.

A Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) flight on its way to Tampa, Florida, had to be diverted to South Carolina after a passenger's portable battery pack started smoking.
What Happened: An hour into its journey, flight 1844 from Baltimore to Tampa was diverted to Myrtle Beach following the incident, Business Insider reported <a href="https://www.businessinsider.com/southwest-flight-diverted-day-after-new-rules-for-portable-chargers-2025-6">on</a> Monday.
"A customer&#8217;s battery charger apparently overheated and began to smoke. We appreciate the professionalism of our flight crew in swiftly handling the situation," a spokesperson for the airline cited in the report said. They added that the airline is investigating the incident.
Why It Matters: The news comes in days after the airline introduced an <a href="https://www.benzinga.com/25/05/45541427/southwest-airlines-announces-passengers-must-keep-portable-chargers-in-plain-sight-amid-fears-of-lithium-battery-fires">industry-first policy </a>that required passengers to keep all portable chargers and battery packs in line of sight while in use to prevent any fire incidents.
Earlier this year, passengers in an Air Busan flight were evacuated after a portable charger in an overhead bin caught fire.
The company also ended its decades-old ‘Two Bags Fly Free' policy recently, which will reportedly help the airline generate <a href="https://www.benzinga.com/markets/25/05/45639000/southwest-airlines-to-reap-430-million-in-profit-from-new-baggage-fees-says-analyst">$430 million in profits</a>, according to analysts.
Elsewhere, the company also announced its first trans-Pacific partnership after it <a href="https://www.benzinga.com/news/travel/25/06/45719330/southwest-airlines-makes-first-trans-pacific-move-with-china-airlines-partnership">signed an agreement</a> with Taiwan's China Airlines Group. The agreement would take effect in 2026.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="201" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25-1024x201.jpg" alt="" class="wp-image-937994" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25-1024x201.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25-300x59.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25-768x151.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25-1536x301.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/04062659/LUV-JUN-4-2O25.jpg 1556w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
LUV scores well on Momentum, Growth and Value metrics. For more such insights, sign up for<a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"> Benzinga Edge</a> today!
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Southwest's New Battery Policy In Spotlight After A Smoking Battery Charger Diverts Flight

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In the current market session, Southwest Airlines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) stock price is at $32.98, after a 1.21% drop. However, over the past month, the company's stock spiked by 10.51%, and in the past year, by 18.62%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1748883619_0_0.png" alt="Past Year Chart" />

<h3>Evaluating Southwest Airlines P/E in Comparison to Its Peers</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Compared to the aggregate P/E ratio of 10.7 in the Passenger Airlines industry, Southwest Airlines Inc. has a higher P/E ratio of 37.51. Shareholders might be inclined to think that Southwest Airlines Inc. might perform better than its industry group. It's also possible that the stock is overvalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1748883619_1.png" alt="Guage" />

In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

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A Look Into Southwest Airlines Inc's Price Over Earnings

Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) is set to launch its first <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/n45717306/southwest-airlines-announces-future-partnership-with-china-airlines" rel="noreferrer noopener">trans-Pacific partnership</a> through an interline agreement with Taiwan&#8217;s China Airlines Group.
The two carriers announced the plan during the International Air Transport Association&#8217;s 2025 Annual General Meeting in New Delhi, India.
The agreement, expected to take effect in early 2026, will enable travelers to book joint itineraries across both airlines, connecting U.S. cities to Asia via shared West Coast gateways like Los Angeles, San Francisco, Seattle, and Ontario, California.
Also Read: <a href="https://www.benzinga.com/trading-ideas/movers/25/05/45675967/jetblue-united-airlines-link-loyalty-programs-with-new-partnership" target="_blank" rel="noreferrer noopener">JetBlue, United Airlines Link Loyalty Programs With New Partnership</a>
Southwest&#8217;s COO, Andrew Watterson, said the collaboration aligns with the airline&#8217;s goal of expanding customer access through high-value global links. Kevin Chen, President of China Airlines, noted the partnership would improve connectivity for travelers within the U.S. and to destinations in Asia.
Southwest is building on its recent international push, which includes a partnership with Icelandair that connects U.S. travelers to Europe. Additional gateway cities, Orlando, Pittsburgh, and Raleigh-Durham, are set to join that network in July.
The tie-up with China Airlines reflects Southwest&#8217;s broader effort to enhance global connectivity and support international growth through targeted partnerships.
Related ETFs: U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>), iShares Transportation Average ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>).
Price Action: LUV shares closed 0.98% lower at $33.38 on Friday.
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Asia

Southwest Airlines Makes First Trans-Pacific Move With China Airlines Partnership

Southwest Airlines And China Airlines Group, A Taiwan-based Carrier, Are In Discussions To Create An Interline Partnership In Early 2026, With Published Connections Expected To Go On Sale Later This Year

<a href="https://event.webcasts.com/starthere.jsp?ei=1721292&amp;tp_key=780b00f7a8">https://event.webcasts.com/starthere.jsp?ei=1721292&amp;tp_key=780b00f7a8</a>

Southwest CEO At Bernstein Conference Reportedly Says Counting 38 Deliveries For This Year, Think That Could Be Upwards To 50 Or Slightly More Because Of Improvement At Boeing

Southwest Airlines CEO At Bernstein Conference Reportedly Says Seeing Stability In Demand In Last Few Weeks; Says Business Bookings Are Holding Up Well

The decision by Southwest Airlines Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) to introduce baggage fees is expected to significantly boost its profits, according to a Wall Street analyst.
What Happened: On Tuesday, Southwest Airlines announced that it would be charging for checked luggage, with the new policy set to take effect on May 28. Despite potential customer dissatisfaction, Jefferies analyst Sheila Kahyaoglu predicts that this move will add nearly $430 million to earnings, before interest and taxes, in 2025, <a href="https://www.marketwatch.com/story/southwests-new-baggage-fees-to-boost-profits-by-more-than-400-million-analyst-says-ba413b0c?mod=home_ln">reported</a> MarketWatch.
The analyst stated that Southwest anticipates $1 billion from new revenue-generating initiatives, $370 million in cost reductions and up to $500 million from projects related to its aircraft fleet.
Kahyaoglu noted that only around 15% of Southwest customers buy the lowest-priced tickets found in searches, with most opting to spend more. This allows the airline to upsell additional services and perks. This strategy, she explained, &#8220;stimulates low-end competition while still offering loyalty&#8221; benefits.
Kahyaoglu has upgraded Southwest&#8217;s stock to neutral from underperform, citing the potential earnings boost from the new baggage fees. She has also raised the stock price target to $33 per share from $24.
SEE ALSO: <a href="https://benzinga.com/25/05/45638217/dogecoin-trading-lower-wednesday-morning-but-analyst-says-memecoin-preparing-for-rebound" target="_blank" rel="noreferrer noopener">Dogecoin Slips Over 2% On Wednesday Morning, But Analyst Says Memecoin Preparing For Rebound &#8211; Benzinga</a>
Why It Matters: The decision to charge for checked luggage marks a significant shift in Southwest&#8217;s business model, which has historically offered a &#8220;two bags fly free&#8221; policy for over 50 years. This change is part of a <a href="https://www.benzinga.com/25/05/45612702/southwest-airlines-50-year-old-two-bags-fly-free-policy-ends-tuesday-basic-economy-fares-set-to-debut">broader </a>strategy that includes the introduction of basic-economy tickets and the abandonment of its open seating policy.
Despite the macroeconomic uncertainty, Southwest Airlines reported better-than-expected Q1 results, with a 1.6% year-over-year increase in operating revenue and a 3.5% year-over-year <a href="https://www.benzinga.com/general/travel/25/04/44968055/southwest-airlines-tosses-out-profit-guidance-amid-macroeconomic-uncertainty-shares-slide-despite-better-than-expected-q1-results">increase </a>in revenue per available seat mile (RASM), primarily driven by yield improvements from revenue management actions and capacity moderation.
Benzinga's Edge Rankings place Southwest Airlines in the 79th percentile for momentum and the 67th percentile for value, reflecting its strong performance in both areas. Check the detailed report <a href="https://www.benzinga.com/quote/LUV" target="_blank" rel="noreferrer noopener">here</a>. 
Southwest&#8217;s shares rose by 5.53% on Tuesday following the announcement, marking a 22.55% increase for the past month. 
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Southwest Airlines To Reap $430 Million In Profit From New Baggage Fees, Says Analyst

Southwest Airlines shares are trading higher after the company announced it will end its 50-year two free checked bags policy.

13 analysts have shared their evaluations of Southwest Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">7</td>
<td align="right">2</td>
<td align="right">2</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">2</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $31.0, a high estimate of $42.00, and a low estimate of $23.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 2.61%. 
<img src="https://www.benzinga.com/files/images/story/2025/1748350819_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Southwest Airlines. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Sheila Kahyaoglu</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$33.00</td>
<td>$24.00</td>
</tr>
<tr>
<td>Savanthi Syth</td>
<td>Raymond James</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$40.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Brandon Oglenski</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$26.00</td>
<td>$32.00</td>
</tr>
<tr>
<td>Stephen Trent</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Sell</td>
<td>$23.00</td>
<td>$30.00</td>
</tr>
<tr>
<td>Brandon Oglenski</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$32.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Thomas Wadewitz</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$27.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>Christopher Stathoulopoulos</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$25.00</td>
<td>$34.00</td>
</tr>
<tr>
<td>Savanthi Syth</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Outperform</td>
<td>$42.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Stephen Trent</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Sell</td>
<td>$30.00</td>
<td>$27.00</td>
</tr>
<tr>
<td>Thomas Wadewitz</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$36.00</td>
<td>$29.00</td>
</tr>
<tr>
<td>Conor Cunningham</td>
<td>Melius Research</td>
<td>Raises</td>
<td>Hold</td>
<td>$34.00</td>
<td>$28.00</td>
</tr>
<tr>
<td>Jamie Baker</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$30.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Jamie Baker</td>
<td>JP Morgan</td>
<td>Announces</td>
<td>Underweight</td>
<td>$25.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Southwest Airlines. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Southwest Airlines compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Southwest Airlines's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Southwest Airlines's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/LUV/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Southwest Airlines analyst ratings.</a>
<h2>All You Need to Know About Southwest Airlines</h2>
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 in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories including a basic economy class that will more directly compete with other airlines' offerings.
<h3>Southwest Airlines: Delving into Financials</h3>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Over the 3M period, Southwest Airlines showcased positive performance, achieving a revenue growth rate of 1.56% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Southwest Airlines's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -2.32%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Southwest Airlines's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Southwest Airlines's ROA stands out, surpassing industry averages. With an impressive ROA of -0.45%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.85, Southwest Airlines adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Analyst Ratings: Simplified</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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Analyst Ratings

A Glimpse Into The Expert Outlook On Southwest Airlines Through 13 Analysts

Southwest Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) is set to start charging customers for checked bags, a move that sets it on par with other airlines.
What Happened: Southwest Airlines will implement the change from Wednesday onwards, thereby ending its &#8220;two bags fly free&#8221; policy that has been in place for over 50 years. This decision is part of a broader shift in Southwest&#8217;s business model, which includes the introduction of basic-economy tickets and the abandonment of its open seating policy, <a href="https://www.cnbc.com/2025/05/26/southwest-airlines-checked-bag-fees.html">reported</a> CNBC.
The exact fee for checked bags is yet to be disclosed, but it is expected to be in line with industry competitors who typically charge around $35 to $40 for the first checked bag on domestic flights.
The new policy will be applicable to Southwest&#8217;s Basic, Wanna Get Away Plus and Anytime fares. However, customers with top-tier status in the Rapid Rewards loyalty program, Business Select fares and those&nbsp;with a Southwest Airlines co-branded&nbsp;credit card will still be entitled to two free checked bags.
Additionally, Southwest Airlines will begin offering basic-economy tickets starting Wednesday. These new &#8220;Basic&#8221; fares restrict changes, have shorter six-month credit validity and assign the latest boarding groups. Additionally, the airline is discontinuing its previous lowest-tier option, the &#8220;Wanna Get Away&#8221; fare.
Southwest Airlines, long known for its open-seating policy, will also begin offering seat assignments on flights starting in 2026. The airline also plans to add extra legroom seats at higher prices, aligning with competitors&#8217; practices.
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Why It Matters: The decision to charge for checked bags was <a href="https://www.benzinga.com/news/25/03/44245996/why-is-southwest-airlines-stock-rising-today">announced&nbsp;</a>in March after months of&nbsp;pressure from Elliott Investment Management, an activist shareholder that secured five board seats last year. 
Earlier this month, the airline announced a new policy requiring passengers to keep <a href="https://www.benzinga.com/25/05/45541427/southwest-airlines-announces-passengers-must-keep-portable-chargers-in-plain-sight-amid-fears-of-lithium-battery-fires">portable chargers</a> in plain sight, a move aimed at preventing incidents involving lithium batteries catching fire mid-flight.
Furthermore, in April, amid &#8216;Macroeconomic Uncertainty,&#8217; Southwest discarded its <a href="https://www.benzinga.com/general/travel/25/04/44968055/southwest-airlines-tosses-out-profit-guidance-amid-macroeconomic-uncertainty-shares-slide-despite-better-than-expected-q1-results">profit guidance</a>, even as it reported better-than-expected Q1 results. These changes reflect Southwest&#8217;s efforts to adapt to the evolving aviation industry landscape and maintain its cost-efficiency and competitiveness.
In a favorable development for the company, the Trump administration recently <a href="https://www.benzinga.com/markets/25/05/45538917/trump-administration-halts-biden-era-lawsuit-against-southwest-airlines-over-alleged-flight-delays">halted a lawsuit</a> against Southwest, initiated by the Biden administration over alleged persistent flight delays.
Benzinga&#8217;s Edge Rankings place Southwest Airlines in the 74th percentile for momentum and the 69th percentile for value, reflecting its strong performance in both areas. Check the detailed report&nbsp;<a href="https://www.benzinga.com/quote/LUV" target="_blank" rel="noreferrer noopener">here</a>.&nbsp;
Over the past month, the shares of Southwest Airlines surged 16.14%, with a 4.3% decline in the past 5 days.
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Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Southwest Airlines' 50-Year-Old 'Two Bags Fly Free' Policy Ends Tuesday — Here's What You'll Pay

President&nbsp;Donald Trump&nbsp;just fired a policy warning shot toward Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), reiterating that he expects the company to manufacture iPhones sold in the U.S. domestically, not in India or anywhere else. If not, he warns, a 25% tariff <a target="_blank" href="https://www.benzinga.com/government/regulations/25/05/45586328/itariff-threat-trump-turns-up-the-heat-but-apples-chart-still-holds-the-line" rel="noreferrer noopener">could be slapped on the tech giant</a>.
The U.S. Department of Transportation (DOT) is expected to declare that Corporate Average Fuel Economy or CAFE regulations implemented under the previous Biden administration exceeded <a target="_blank" href="https://www.benzinga.com/25/05/45514932/us-transportation-secretary-says-the-biden-administration-exceeded-legal-authority-to-include-evs-in-cafe-regulations-report" rel="noreferrer noopener">the government&#8217;s legal authority</a>.
Technology
Apple poached&nbsp;Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)-owned&nbsp;Google&#8217;s&nbsp;AI chief&nbsp;John Giannandrea. However, the tech giant is still struggling to catch up <a target="_blank" href="https://www.benzinga.com/media/25/05/45486193/why-is-apple-still-behind-on-ai-expert-dissects-reasons-behind-iphone-maker-lagging-likes-of-microsoft-and-amazon-despite-poaching-googles-ai-chief" rel="noreferrer noopener">in the artificial intelligence race</a>.
Apple&nbsp;reportedly plans to launch AI-powered smart glasses in late 2026 to compete with&nbsp;<a target="_blank" href="https://www.benzinga.com/media/25/05/45580078/apple-could-reportedly-launch-ai-smart-glasses-next-year-and-here-is-what-all-they-are-expected-to-do" rel="noreferrer noopener">Meta Platforms, Inc.&#8217;s</a><a target="_blank" href="https://www.benzinga.com/media/25/05/45580078/apple-could-reportedly-launch-ai-smart-glasses-next-year-and-here-is-what-all-they-are-expected-to-do" rel="noreferrer noopener">&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Ray-Bans</a>.
Meta&#8217;s&nbsp;Instagram is reportedly testing a new referral program that pays creators for driving traffic and sign-ups, <a target="_blank" href="https://www.benzinga.com/media/25/05/45510687/instagram-is-offering-creators-up-to-20000-to-bring-new-users-to-the-mark-zuckerberg-led-platform-heres-the-nitty-gritty" rel="noreferrer noopener">with&nbsp;payouts as high&nbsp;as $20,000</a>.
Meta CEO&nbsp;Mark Zuckerberg&nbsp;had once criticized the proprietary AirPods protocol of&nbsp;Apple, advocating for it to be <a target="_blank" href="https://www.benzinga.com/markets/25/05/45564798/mark-zuckerberg-once-vented-why-apple-airpods-have-no-competition-one-of-the-protocols-that-they-used" rel="noreferrer noopener">made accessible to competitors</a>.
Alphabet&#8216;s&nbsp;autonomous driving service&nbsp;Waymo&#8216;s CEO,&nbsp;Tekedra Mawakana,&nbsp;has shared her thoughts on the LiDAR vs Camera-based <a target="_blank" href="https://www.benzinga.com/tech/25/05/45585674/waymo-ceo-takes-aim-at-teslas-camera-only-approach-you-have-to-be-able-to-have-this-vision-thats-better-than-humans" rel="noreferrer noopener">system debate for autonomous driving</a>.
Alphabet&#8216;s Robotaxi&nbsp;Waymo&nbsp;has announced it reached the 10 million paid Robotaxi rides milestone, doubling its lifetime <a target="_blank" href="https://www.benzinga.com/25/05/45539621/tesla-robotaxi-rival-waymo-reaches-10-million-paid-rides-milestone-as-robotaxis-step-into-the-spotlight" rel="noreferrer noopener">total in a period of 5 months</a>.
A federal judge ruled that&nbsp;Google and AI startup&nbsp;Character.AI must face a wrongful death lawsuit filed by a Florida mother who claims the chatbot encouraged her <a target="_blank" href="https://www.benzinga.com/tech/25/05/45558772/google-and-character-ai-sued-after-teen-dies-following-interaction-with-game-of-thrones-themed-chatbot-judge-says-free-speech-defense-not-acceptable" rel="noreferrer noopener">teenage son to take his own life</a>.
Google's latest AI model is wowing the internet with near-realistic video generation—but for now, it&#8217;s locked <a target="_blank" href="https://www.benzinga.com/25/05/45560919/everyones-losing-their-minds-over-googles-veo-3-ai-videos-and-everyones-also-annoyed-they-cant-actually-use-it-yet-here-are-some-wild-examples-of-the-magic-this-model-can-create" rel="noreferrer noopener">behind an expensive subscription</a>.
Nvidia Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO&nbsp;Jensen Huang&#8217;s&nbsp;return to his native Taiwan for Computex 2025 has sparked a wave of &#8220;Jensanity,&#8221; with fans treating the <a target="_blank" href="https://www.benzinga.com/media/25/05/45487329/nvidias-jensen-huang-gets-rockstar-welcome-in-taiwan-pop-up-merch-screaming-fans-and-jet-parking-drama" rel="noreferrer noopener">AI pioneer like a celebrity</a>.
David Sacks, a tech investor and White House AI advisor, said that he believes the science fiction world created by&nbsp;Isaac Asimov is about to become reality, after&nbsp;Nvidia CEO stated that humanoid robots could fill <a target="_blank" href="https://www.benzinga.com/tech/25/05/45511786/trump-ai-czar-says-sci-fi-future-imagined-by-issac-asimov-is-here-after-nvidia-ceo-jensen-huang-observes-world-needs-millions-of-new-workers" rel="noreferrer noopener">the significant global labor shortage</a>.
Automobiles &amp; Airlines
Future Fund LLC&#8216;s managing director,&nbsp;Gary Black,&nbsp;says that analysts may be expecting too much from&nbsp;Tesla Inc.‘s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) <a target="_blank" href="https://www.benzinga.com/25/05/45488706/gary-black-thinks-expectations-for-teslas-robotaxi-launch-are-too-high-currently-teslas-autonomy-cant" rel="noreferrer noopener">June Robotaxi launch in Austin</a>.
Rivian Automotive Inc.&#8216;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) software chief&nbsp;Wassym Bensaid&nbsp;praised the&nbsp;Tesla rival&#8217;s partnership with German Automaker&nbsp;Volkswagen AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) as the company <a target="_blank" href="https://www.benzinga.com/markets/25/05/45490934/rivians-software-chief-hails-volkswagen-partnership-says-german-automaker-gained-startup-dna-ahead-of-budget-ev-launch" rel="noreferrer noopener">prepares to launch its budget EV</a>.
Ford Motor Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) will reportedly let&nbsp;Nissan Motor Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSANF#OTC">NSANF</a>) use part of its flagship <a target="_blank" href="https://www.benzinga.com/25/05/45562915/ford-will-let-nissan-use-part-of-kentucky-battery-factory-could-this-be-a-scaling-back-on-ev-ambitions" rel="noreferrer noopener">Kentucky battery manufacturing plant</a>.
Tesla CEO&nbsp;Elon Musk&nbsp;returned to his&nbsp;Microsoft Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) roots, joining CEO&nbsp;Satya Nadella&nbsp;at "Build 2025" to&nbsp;announce the integration&nbsp;of&nbsp;xAI&#8217;s Grok&nbsp;into Azure — a full-circle moment for the tech billionaire <a target="_blank" href="https://www.benzinga.com/tech/25/05/45510245/elon-musk-was-once-a-microsoft-intern-now-his-company-is-bringing-grok-to-azure-incredibly-important-for-ai-to-be-grounded-in-reality-xai-ceo-tells-satya-nadella" rel="noreferrer noopener">who once interned at the software giant</a>.
Elon Musk&nbsp;has shared a major Neuralink update at the Qatar Economic Forum with the Neurotechnology company&#8217;s Brain-Chip Interface Blindsight <a target="_blank" href="https://www.benzinga.com/25/05/45538889/elon-musk-shares-major-neuralink-update-at-qatar-economic-forum" rel="noreferrer noopener">set for its maiden trial next year</a>.
Chinese EV giant&nbsp;BYD Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>) has launched its best-selling all-electric hatchback <a target="_blank" href="https://www.benzinga.com/markets/25/05/45560953/byds-europe-pivot-in-full-swing-with-new-26000-affordable-ev-amid-tesla-sales-slump" rel="noreferrer noopener">Seagull&#8217;s updated version in Europe</a>.
Southwest Airlines Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) has announced that all passengers will be required to keep portable chargers in plain sight <a target="_blank" href="https://www.benzinga.com/25/05/45541427/southwest-airlines-announces-passengers-must-keep-portable-chargers-in-plain-sight-amid-fears-of-lithium-battery-fires" rel="noreferrer noopener">when in use for safety reasons</a>.
Entertainment
Walt Disney Co.&nbsp;filed a lawsuit against&nbsp;YouTube, a subsidiary of&nbsp;Alphabet Inc.&#8217;s&nbsp;Google&nbsp;to stop the appointment of former&nbsp;ESPN&nbsp;executive&nbsp;Justin Connolly&nbsp;as its new global head of media and sports, alleging breach of contract, unfair competition and interference <a target="_blank" href="https://www.benzinga.com/news/legal/25/05/45579755/disney-sues-youtube-to-block-hiring-of-former-espn-executive-justin-connolly-amid-sports-streaming-turf-war" rel="noreferrer noopener">with a contractual relationship</a>.
Walt Disney Co.&#8217;s&nbsp;Marvel Studios&nbsp;has delayed the theatrical release of &#8220;Avengers: Doomsday&#8221; from May 1, 2026, to Dec. 18, 2026, while &#8220;Avengers: Secret Wars&#8221; will now debut on Dec. 17, 2027, <a target="_blank" href="https://www.benzinga.com/general/entertainment/25/05/45581252/marvel-delays-robert-downey-jr-starrer-avengers-doomsday-and-secret-wars-to-december-2026-but-disney-has-a-summer-blockbuster-in-store" rel="noreferrer noopener">instead of May 7, 2027</a>.
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Consumer Tech News (May 19-May 23): Trump Warns Apple Of 25% Tariff if Manufactured Overseas, Disney Sues YouTube & More

<a href="https://www.bloomberg.com/news/articles/2025-05-22/southwest-air-falls-as-cfo-sees-ongoing-air-travel-weakness" title="https://www.bloomberg.com/news/articles/2025-05-22/southwest-air-falls-as-cfo-sees-ongoing-air-travel-weakness">https://www.bloomberg.com/news/articles/2025-05-22/southwest-air-falls-as-cfo-sees-ongoing-air-travel-weakness</a>

'Southwest Air Falls As CFO Sees Ongoing Air Travel Weakness' -Bloomberg

Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) has announced that all passengers will be required to keep portable chargers in plain sight when in use for safety reasons.
What Happened: The airline announced the change in policy, which would go into effect on May 28, 2025, as it tries to curtail incidents involving lithium batteries catching on fire mid-flight.
"Southwest will introduce a first-in-industry Safety policy on May 28 requiring Customers to keep portable charging devices visible while in use during flight. Using portable charging devices while stored in a bag or overhead bin will no longer be permitted. Nothing is more important to Southwest than the Safety of its Customers and Employees." the airline shared in a statement.
Why It Matters: The airline is the first in the U.S. to adopt this policy amid an increasing number of incidents of lithium-ion batteries catching fire. Earlier this year, all passengers on an Air Busan flight in Korea on its way to Hong Kong were evacuated following an incident where a power bank caught fire in the overhead bins.
Elsewhere, the Trump administration has halted a<a href="https://www.benzinga.com/markets/25/05/45538917/trump-administration-halts-biden-era-lawsuit-against-southwest-airlines-over-alleged-flight-delays"> Biden-era lawsuit</a> against Southwest Airlines over alleged flight delays. The lawsuit alleged Southwest Airlines "illegally operated" multiple chronically delayed flights and "disrupted" passengers&#8217; travel.
U.S. Airlines are facing a tough period as data suggests there has been a <a href="https://www.benzinga.com/general/travel/25/05/45516390/top-us-airports-see-sharpest-drop-in-arrivals-as-business-government-and-tourist-travel-decline?_gl=1&#x2A;pozgo4&#x2A;_gcl_au&#x2A;MTU3NTg1OTgzOC4xNzQ3ODA0NzAy&#x2A;_ga&#x2A;R1MyLjEuczE3NDc4MjY4MTgkbzIkZzEkdDE3NDc4MjcwNjMkajAkbDAkaDA.&#x2A;_ga_V7ZK73W7N0&#x2A;czE3NDc4MjY3MzgkbzYkZzEkdDE3NDc4Mjk4NTAkajAkbDAkaDA.">decline in arrivals </a>at several of the U.S.' top airports, including JFK and LAX. Aviation woes in the U.S. continue as the FAA is also reportedly considering <a href="https://www.benzinga.com/general/travel/25/05/45341520/faa-mulls-cutting-flights-at-newark-airport-amid-staffing-woes-and-equipment-failures-report">reducing the number </a>of flights operating out of Newark, citing equipment failures and staff shortages.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="194" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025-1024x194.jpg" alt="" class="wp-image-922740" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025-1024x194.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025-300x57.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025-768x146.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025-1536x291.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21082858/LUV-MAY-21-2025.jpg 1661w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
LUV scores well on Momentum, Growth and Value metrics. For more such insights, sign up for<a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"> Benzinga Edge</a> today!
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Courtesy of Southwest Airlines Company

Travel

Southwest Airlines Announces Passengers Must Keep Portable Chargers In Plain Sight Amid Fears Of Lithium Battery Fires

The Trump administration has put a halt to a lawsuit against&nbsp;Southwest Airlines&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) that was initiated by the Biden administration over alleged persistent flight delays.
What Happened: A Southwest spokesperson <a href="https://www.foxbusiness.com/economy/trump-admin-drops-biden-era-southwest-airlines-lawsuit-over-delays?ref=biztoc.com">told </a>Fox Business that the company appreciated the Department of Transportation's decision to drop its lawsuit, adding that they believed it was the correct outcome in this case.
The lawsuit, filed during the final days of the Biden administration, accused Southwest Airlines of &#8220;illegally operating multiple chronically delayed flights and disrupting passengers' travel.&#8221; The two flights at the heart of the lawsuit were between Chicago Midway International Airport and Oakland, California and Baltimore and Cleveland.
The lawsuit claimed that the flights experienced chronic delays for five consecutive months, affecting 180 passengers between April and August 2022. The Biden administration also accused Southwest Airlines of &#8220;unfair, deceptive and anticompetitive&#8221; conduct by allegedly providing inaccurate departure and arrival times.
However, a spokesperson for Southwest Airlines told Fox Business that the flights in question took place during the COVID-19 pandemic, a period of unparalleled challenges for the industry. 
The Department of Transportation (DOT) now maintains that the lawsuit should never have been filed. &#8220;Southwest has remedied the underlying issues and USDOT will work with them fairly, not sue them for political gain,&#8221; according to a DOT spokesperson.
SEE ALSO: <a href="https://benzinga.com/markets/cryptocurrency/25/05/45510057/senate-crypto-bill-passes-key-vote-genius-act-moves-toward-final-passage" target="_blank" rel="noreferrer noopener">Senate Crypto Bill Passes Key Vote, GENIUS Act Moves Toward Final Passage &#8211; Benzinga</a>
Why It Matters: The lawsuit against Southwest Airlines came at a time when airlines were facing a challenging start to 2025, with concerns centered around consumer behavior, domestic capacity and the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44087114/airlines-face-a-rough-start-to-2025-full-service-carriers-hold-the-advantage-analyst">effects of reduced</a> government travel. 
Southwest Airlines had also reported a volatile first quarter, with an <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44990066/whats-going-on-with-southwest-airlines-stock-thursday">adjusted loss</a> of 13 cents per share, beating analysts' estimate of a loss of 18 cents per share. The lawsuit&#8217;s dismissal could provide some relief to the airline, which has been working to improve its operational reliability.
Benzinga's Edge Rankings place Southwest Airlines in the 74th percentile for momentum and the 67th percentile for value, reflecting its strong performance in both areas. Check the detailed report <a href="https://www.benzinga.com/quote/LUV">here</a>. 
Over the past one month, the shares of Southwest Airlines surged 35.19%.
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</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Trump Administration Halts Biden-Era Lawsuit Against Southwest Airlines Over Alleged Flight Delays

Is a recession quietly taxiing down the runway? In March, airfare prices dropped 5.3% year-over-year, the sharpest decline in nearly four years, according to the<a href="https://www.bls.gov/news.release/pdf/cpi.pdf"> Bureau of Labor Statistics</a>.&nbsp;
The drop came as major U.S. airlines — including Delta Air Lines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>), Southwest Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>), United Airlines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), and Alaska Airlines (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) — warned of weaker-than-expected demand, spurred by economic uncertainty, stalled business travel, and global volatility.
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<h2 class="wp-block-heading">Slashed Fares, Shaky Forecasts, And A Bumpy Ride Ahead</h2>
&#8220;Like others in the industry, we&#8217;ve seen lower fare levels being booked for April and throughout the summer,&#8221; Alaska Airlines CFO Shane Tackett told Reuters in an <a href="https://www.reuters.com/business/alaska-air-pulls-its-2025-outlook-sees-weaker-profit-second-quarter-2025-04-23/">interview</a> published last month. Though he emphasized that demand hadn't collapsed, Tackett confirmed the airline had to reduce fares to keep planes full.
Robert Isom, CEO of American Airlines, echoed the concern during the company's quarterly <a href="https://americanairlines.gcs-web.com/events/event-details/q1-2025-american-airlines-group-inc-earnings-conference-call">earnings call </a>on April 24. "The economic uncertainty in the market has pressured demand and impacted America&#8217;s first-quarter results and second-quarter outlook," he told analysts, prompting the airline to pull its 2025 guidance.
Delta CEO Ed Bastian said during the company's April 9 <a href="https://s2.q4cdn.com/181345880/files/doc_earnings/2025/q1/transcript/CORRECTED-TRANSCRIPT_-Delta-Air-Lines-Inc-DAL-US-Q1-2025-Earnings-Call.pdf">earnings call</a>, highlighting measures taken in response to economic uncertainties. These include deferring aircraft deliveries and maintaining flat capacity growth for the second half of 2025. Bastian noted that corporate travel, which had been trending up 10% year-over-year at the start of 2025, has now flattened.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — <a href="https://www.benzinga.com/money/boxabl-scaling-fast-from-spacex-orders-to-600-homes-built-this-60k-foldable-home-may-be-the-future-of-housing">this is your last chance to become an investor for $0.80 per share.</a>
Meanwhile, United Airlines took a split-scenario approach. In an <a href="https://www.sec.gov/Archives/edgar/data/319687/000010051725000013/ual_12312024erex992.htm">investor update</a> filed with the SEC in January, the airline issued two 2025 profit forecasts: one showing earnings per share between $11.50 and $13.50 if the economy holds steady, and another EPS of $7 to $9 in a recession. Starting in July, United plans to reduce domestic capacity by 4%.
This domestic softness comes at a time when business travel budgets are also tightening. <a href="https://www.wsj.com/business/airlines/business-travel-expenses-decline-trade-war-7b0ac8b4">The Wall Street Journal</a> reported that companies like Invesco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVZ#NYSE">IVZ</a>) and Meta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) are trimming non-essential travel due to cost pressures and diminished ROI from face-to-face meetings.
Despite the turbulence at home, premium and international travel segments are staying aloft. United Airlines saw a <a href="https://ir.united.com/static-files/eac79d3d-fdbc-4c6d-97f2-109769c238a8">17% jump in premium booking</a>s and 5% rise in international sales. Delta is also leaning into loyalty programs and premium cabin sales.
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Alaska Airlines CFO Flags Softening Demand As Airlines Slash Ticket Prices – 'We Have Seen Lower Fare Levels Being Booked'

LUV stock has given up its prior gain. Southwest shares were trading higher following a report indicating the company filed for a permit for more international routes.

Southwest shares are trading higher following a report indicating the company filed for a permit for more international routes.

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SOUTHWEST AIRLINES DECLARES 185th QUARTERLY DIVIDEND

Southwest Airlines to present at the Wolfe Research Global Transportation & Industrials Conference

Southwest Airlines to Present at the Bernstein Strategic Decisions Conference

Southwest Airlines to Present at the TD Cowen Future of the Consumer Conference

SOUTHWEST AIRLINES ANNOUNCES FUTURE PARTNERSHIP WITH CHINA AIRLINES

CHEERS TO 54 YEARS: SOUTHWEST AIRLINES LAUNCHES WEEK OF WOW SALE WITH UP TO 50 PERCENT OFF FARES, A CRUISE GIVEAWAY, AND TRAVEL DEALS

MILE HIGH GROWTH IN DENVER: SOUTHWEST AIRLINES CARGO CELEBRATES OPENING OF NEW FACILITY OFFERING INCREASED CAPACITY

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