Southwest Airlines (NYSE:LUV) hit a 52-week high at $36.13, signaling renewed investor confidence and marking a major milestone for the airline. With a market cap of $20.34 billion and trailing 12-month revenue of $27.58 billion, the stock has risen 32.85% over the past year. This upward trend reflects strong recovery momentum fueled by increased travel demand and the airline’s strategic pivots. Southwest is slated to release its next earnings report on July 24, with investors closely watching for continued signs of operational and financial resilience in a competitive air travel sector.
Key Business Updates
Southwest recently announced a significant shift in its baggage policy: the airline will discontinue its hallmark free checked bag service, introducing fees of $35 for the first bag and $45 for the second. However, credit card holders and elite-status customers will be exempt from these charges.
Looking internationally, Southwest is preparing to launch a trans-Pacific interline agreement with Taiwan’s China Airlines Group, set to begin in early 2026. The partnership aims to connect Southwest’s U.S. domestic network with China Airlines’ long-haul routes, improving access to Asia through key California hubs.
Meanwhile, Moody’s has downgraded Southwest’s senior unsecured credit rating from Baa1 to Baa2, citing expectations of a slower rebound in operating metrics due to macroeconomic uncertainty. Nonetheless, the stable outlook suggests anticipated gradual improvements in margins and continued liquidity strength.
In efforts to deepen customer engagement, Southwest has also introduced enhanced fare options and expanded perks for its Rapid Rewards Credit Cardholders and elite members, reflecting its commitment to adapting offerings in line with evolving traveler expectations.
These developments illustrate Southwest’s strategy to navigate shifting industry dynamics while capitalizing on renewed demand and strengthening its international positioning.
Southwest Airlines stock price
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