Southwest Airlines Co

LUV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$44.00	Mtqsp	Xzbbsmnq

Southwest Airlines Earnings: Woe to Low-Cost Airlines With Escalating Costs; Fair Value Unchanged

Nicolas Owens

Jan 26, 2024

On Jan. 25, Southwest released 2023 results and initial expectations for 2024, and we were surprised by the escalation in costs throughout the airline's accounts. While we are retaining our fair value estimate of $19 per share, our forecast includes thin margins and is predicated on market share gains from a distressed low-cost competitor.

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