Southwest Airlines Co. Overview
Pro stress-test →Southwest Airlines operates as a passenger airline company providing scheduled air transportation services in the US and near-international markets, with a fleet of 803 Boeing 737 aircraft serving 117 destinations. The airline delivered a stellar start to 2026 with shares surging 22.99% year-to-date as of February 12, driven by a historic transformation ending its iconic low-cost model.
Strategic Profile
Pro stress-test →On February 9, 2026, Southwest launched assigned seating and extra legroom options, ending its 54-year open seating policy through an overnight conversion of over 800 aircraft. The airline guided 2026 adjusted EPS to at least $4.00 versus $0.93 in 2025 and expects first quarter revenue per seat mile up at least 9.5% from assigned seating, bag fees and premium upgrades, positioning the airline as a modern hybrid carrier competing with legacy carriers.
Competitive Landscape
Pro stress-test →Southwest surged 23% year-to-date compared to Delta Air Lines at 6.29%, dramatically outpacing the broader airline sector. Southwest's Texas rival American Airlines has particularly struggled to recover from weather-related impacts, potentially giving Southwest a competitive advantage. The airline is now competing as a hybrid carrier with assigned seating and ancillary revenue streams similar to legacy carriers.
Industry Context
Southwest Airlines Co. operates in Airlines - Passenger Transportation.
Key facts
Founded: 1971 · Headquarters: Dallas, US · Employees: 60,000 · Revenue: $28.1B · Market cap: $25.1B