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Southwest Airlines Co

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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation

Southwest's Travel Disruptions Will Result in a Q4 Loss, but Our Long-Term Outlook Remains Intact

Business Strategy and Outlook

Southwest is a leisure-focused low-cost carrier and is the largest domestic carrier in the U.S. We believe Southwest’s customer-friendly tactics benefit the firm by providing the closest thing to a brand asset in the airline industry. We point to the fact that over 85% of Southwest's sales are through its own distribution channel, where prices among carriers are difficult to compare, while other carriers have a higher reliance on third-party distributors to earn customers.

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