Analyst Note
| Burkett Huey, CFA |No-moat rated Southwest Airlines reported a difficult third quarter, as the pandemic has halted most air travel in the U.S., but it is optimistic that the nascent recovery in passenger traffic will last until a COVID-19 vaccine allows for a much more robust recovery. We are raising our fair value estimate to $44.50 per share from $44 on a slightly better near-term revenue environment and slightly lower near-term expenses, particularly fuel expense.