Southwest Airlines Future Growth

Future criteria checks 4/6

Southwest Airlines is forecast to grow earnings and revenue by 24.3% and 6.1% per annum respectively. EPS is expected to grow by 26.5% per annum. Return on equity is forecast to be 23% in 3 years.

Key information

24.3%

Earnings growth rate

26.55%

EPS growth rate

Airlines earnings growth	12.5%
Revenue growth rate	6.1%
Future return on equity	22.96%
Analyst coverage	Good
Last updated	12 Mar 2026

Recent future growth updates

Recent updates

Southwest Airlines Stock Has Doubled: It's Time To Take Profits (Rating Downgrade)

Feb 09

Southwest Airlines (NYSE:LUV) Has Affirmed Its Dividend Of $0.18

Feb 08

Revenues Not Telling The Story For Southwest Airlines Co. (NYSE:LUV) After Shares Rise 27%

Dec 12

Southwest Airlines' (NYSE:LUV) Returns On Capital Not Reflecting Well On The Business

Jul 11

Southwest Airlines' (NYSE:LUV) Dividend Will Be $0.18

Jun 11

Southwest Airlines (NYSE:LUV) Has Announced A Dividend Of $0.18

May 20

Investors Appear Satisfied With Southwest Airlines Co.'s (NYSE:LUV) Prospects As Shares Rocket 32%

May 18

Southwest Airlines Is Delivering For Investors Again

Mar 25

The Southwest Turnaround: An Attractive Capacity Growth Plan Clouded By Capex Uncertainty

Feb 28

Southwest Airlines Could Fly High On Demand Growth, But Needs To Improve Margins

Feb 19

Wall Street Lunch: Airline Stocks Take Off

Dec 05

Southwest's Lead From COVID Has Dissipated, And Now They Face The Consequences

Oct 20

Earnings and Revenue Growth Forecasts

NYSE:LUV - Analysts future estimates and past financials data (USD Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
12/31/2028	34,586	2,331	1,121	4,909	11
12/31/2027	33,112	2,306	825	4,619	22
12/31/2026	31,582	2,117	416	3,879	22
12/31/2025	28,063	441	-831	1,842	N/A
9/30/2025	27,551	379	-251	2,023	N/A
6/30/2025	27,472	392	-272	1,851	N/A
3/31/2025	27,582	547	-563	1,426	N/A
12/31/2024	27,483	465	-1,592	462	N/A
9/30/2024	27,376	-48	-1,927	411	N/A
6/30/2024	27,031	78	-1,748	913	N/A
3/31/2024	26,714	393	-739	2,354	N/A
12/31/2023	26,091	465	-356	3,164	N/A
9/30/2023	25,440	497	-881	3,318	N/A
6/30/2023	25,135	581	-1,492	2,936	N/A
3/31/2023	24,826	658	-1,059	3,425	N/A
12/31/2022	23,814	539	-156	3,790	N/A
9/30/2022	22,693	827	693	3,458	N/A
6/30/2022	21,152	996	825	2,649	N/A
3/31/2022	18,432	583	1,818	2,748	N/A
12/31/2021	15,790	977	1,811	2,322	N/A
9/30/2021	12,752	1	1,061	1,479	N/A
6/30/2021	9,866	-1,602	634	1,003	N/A
3/31/2021	6,866	-2,864	-491	-105	N/A
12/31/2020	9,048	-3,074	-1,642	-1,127	N/A
9/30/2020	12,765	-1,653	-393	293	N/A
6/30/2020	16,611	163	1,463	2,436	N/A
3/31/2020	21,513	1,819	1,414	2,505	N/A
12/31/2019	22,428	2,300	2,960	3,987	N/A
9/30/2019	22,402	2,441	N/A	4,152	N/A
6/30/2019	22,338	2,398	N/A	4,332	N/A
3/31/2019	22,170	2,389	N/A	4,996	N/A
12/31/2018	21,965	2,465	N/A	4,893	N/A
9/30/2018	21,519	3,558	N/A	4,467	N/A
6/30/2018	21,247	3,470	N/A	4,191	N/A
3/31/2018	21,236	3,481	N/A	3,306	N/A
12/31/2017	21,146	3,357	N/A	3,929	N/A
9/30/2017	20,963	2,132	N/A	4,075	N/A
6/30/2017	20,800	1,993	N/A	3,935	N/A
3/31/2017	20,453	2,070	N/A	4,302	N/A
12/31/2016	20,289	2,183	N/A	4,293	N/A
9/30/2016	20,327	2,258	N/A	3,908	N/A
6/30/2016	20,333	2,453	N/A	3,887	N/A
3/31/2016	20,060	2,241	N/A	3,402	N/A
12/31/2015	19,648	2,181	N/A	3,238	N/A
9/30/2015	19,299	1,835	N/A	3,118	N/A
6/30/2015	18,952	1,580	N/A	2,523	N/A
3/31/2015	18,853	1,437	N/A	3,235	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUV's forecast earnings growth (24.3% per year) is above the savings rate (3.4%).

Earnings vs Market: LUV's earnings (24.3% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: LUV's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LUV's revenue (6.1% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: LUV's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: LUV's Return on Equity is forecast to be high in 3 years time (23%)

Discover growth companies

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2026/03/12 09:50
End of Day Share Price	2026/03/12 00:00
Earnings	2025/12/31
Annual Earnings	2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Southwest Airlines Co. is covered by 38 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
John Staszak	Argus Research Company
Brandon Oglenski	Barclays
Brandon Oglenski	Barclays

Southwest Airlines Future Growth

Future criteria checks 4/6

Key information

Recent future growth updates

Consensus EPS estimates increase by 31%

Price target increased by 9.1% to US$45.60

Southwest Airlines Co. Provides Operating Guidance for the First Quarter and Full Year 2026

Price target increased by 7.1% to US$41.93

Price target increased by 8.1% to US$41.02

Price target increased by 8.2% to US$37.29

Recent updates

Investor sentiment deteriorates as stock falls 16%

Upcoming dividend of US$0.18 per share

Southwest Airlines Co. Announces Board Resignations, Effective February 23, 2026

Southwest Airlines Stock Has Doubled: It's Time To Take Profits (Rating Downgrade)

Southwest Airlines (NYSE:LUV) Has Affirmed Its Dividend Of $0.18

Fourth quarter dividend of US$0.18 announced

Southwest Airlines Co. Declares Quarterly Cash Dividend, Payable on April 2, 2026

Consensus EPS estimates increase by 31%

Investor sentiment improves as stock rises 29%

Price target increased by 9.1% to US$45.60

Full year 2025 earnings: EPS exceeds analyst expectations

Southwest Airlines Co. Provides Operating Guidance for the First Quarter and Full Year 2026

Price target increased by 7.1% to US$41.93

Price target increased by 8.1% to US$41.02

Upcoming dividend of US$0.18 per share

Price target increased by 8.2% to US$37.29

Southwest Airlines Co. to Open New Crew Base for Pilots and Flight Attendants At Austin Bergstrom International Airport (AUS)

Revenues Not Telling The Story For Southwest Airlines Co. (NYSE:LUV) After Shares Rise 27%

Ontario International Airport Announces Ontario to Honolulu Aboard Southwest Beginning June 2026

Third quarter dividend of US$0.18 announced

Southwest Airlines Co. Declares Quarterly Dividend, Payable on January 16, 2026

Southwest Airlines Co. Appoints Danielle Collins as Airline's New Head of Investor Relations, Effective November 3

We Like The Quality Of Southwest Airlines' (NYSE:LUV) Earnings

Consensus EPS estimates increase by 16%

Third quarter 2025 earnings: EPS exceeds analyst expectations

Southwest Airlines Co. Announces Earnings Guidance for Fourth Quarter and Full Year 2025

Southwest Airlines Co. Announces Summer 2026 Schedule Available for Purchase

Consensus EPS estimates increase by 12%

Southwest Airlines Co. Announces Service to Santa Rosa, California's Charles M. Schulz Sonoma County Airport

Southwest Airlines (NYSE:LUV) Will Pay A Dividend Of $0.18

Upcoming dividend of US$0.18 per share

Southwest Airlines Co. Extends Flight Schedule with More Routes

Southwest Airlines Co. Launches In-House Packaged Vacations Product--Getaways by Southwest

Southwest Airlines' (NYSE:LUV) Dividend Will Be $0.18

Southwest Airlines Co. Announces New Service At Knoxville and Spring Break Schedule Available for Purchase

Second quarter dividend of US$0.18 announced

Southwest Airlines Co. Announces Board Changes, Effective August 1, 2025 and Forms New Ad Hoc Fleet Oversight Committee

Investor sentiment deteriorates as stock falls 18%

Southwest Airlines Co. Announces Service to St. Thomas, United States Virgin Islands

Second quarter 2025 earnings: EPS misses analyst expectations

New major risk - Dividend sustainability

Southwest Airlines Co. Announces Impairment Charges for the Second Quarter Ended June 30, 2025

Southwest Airlines Co. Intends to Grow Its Network in 2026 with New Services

Southwest Airlines' (NYSE:LUV) Returns On Capital Not Reflecting Well On The Business

Upcoming dividend of US$0.18 per share

Southwest Airlines' (NYSE:LUV) Dividend Will Be $0.18

Southwest Airlines (NYSE:LUV) Has Announced A Dividend Of $0.18

Investors Appear Satisfied With Southwest Airlines Co.'s (NYSE:LUV) Prospects As Shares Rocket 32%

First quarter dividend of US$0.18 announced

Southwest Airlines Co. Declares Quarterly Cash Dividend, Payable on July 9, 2025

Southwest Airlines Announces Reimagined Fare Products, New Benefits for Rapid Rewards Credit Cardmembers and Tier Member Customers

Southwest Airlines Co., Annual General Meeting, May 14, 2025

Southwest Airlines Is Delivering For Investors Again

The Southwest Turnaround: An Attractive Capacity Growth Plan Clouded By Capex Uncertainty

Southwest Airlines Could Fly High On Demand Growth, But Needs To Improve Margins

Southwest Airlines Co. Announces Reduction in Corporate Overhead Workforce

Southwest Airlines Co. Announces Tom Doxey as Executive Vice President

Fourth quarter dividend of US$0.18 announced

Eduardo F. Conrado and Elaine Mendoza Not to Stand for Re-Election as Member of the Board of Directors of Southwest Airlines Co

Southwest Airlines Co. Extends Schedule Through November 1, 2025

Southwest Airlines Co. Declares Quarterly Cash Dividend, Payable on April 2, 2025

Full year 2024 earnings: EPS misses analyst expectations

Southwest Airlines Co. Provides Operating Guidance for the First Quarter and Full Year of 2025 and Provides Targets for 2027

Southwest Airlines Co. Announces Retirement of Tammy Romo as Chief Financial Officer, Effective April 1, 2025

Upcoming dividend of US$0.18 per share

Wall Street Lunch: Airline Stocks Take Off

Third quarter dividend of US$0.18 announced

Southwest Airlines Co. Declares Quarterly Cash Dividend, Payable on January 16, 2025

Southwest Airlines Co. Appoints Rakesh Gangwal as Independent Chair of the Board of Directors and Names New Board Committee