Southwest Airlines is basically a different company today than it was six months ago. If you’re checking the LUV stock price today, you’re probably seeing a number hovering around $42.54. It’s down a bit from yesterday—about 1.5% as of the last check on January 14—but that tiny dip hides a much wilder story.
Wall Street is currently obsessed with Southwest.
Just a few days ago, JPMorgan did something they almost never do: a rare "double upgrade." They didn't just move the stock from "sell" to "neutral." They jumped it all the way to "overweight" (which is finance-speak for "buy this now") and slapped a massive $60 price target on it.
That’s a huge leap from where we are right now.
Why the sudden love for LUV? It’s not because the current profits are amazing. Honestly, they aren't. Profits recently took a 42% dive. But the market isn't looking at the past; it's looking at the radical "transformation" happening inside the cabin.
Why the LUV stock price today is a bet on the future
For decades, Southwest was the "rebel" airline. No assigned seats. No bag fees. Just one type of plane. It worked until it didn't.
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Now, the airline is finally caving to reality. Starting right now in January 2026, those famous open-seating cattle calls are disappearing. They are retrofitting planes to add extra legroom and finally allowing people to pick their seats. For the first time ever, Southwest is even introducing a "basic economy" tier to fight the ultra-low-cost carriers.
Investors are betting that these changes will unlock a mountain of cash.
The $5 EPS Dream
The JPMorgan analysts, led by Jamie Baker, are predicting that Southwest could hit $5.00 in earnings per share (EPS) by the end of 2026. To put that in perspective, the rest of the market was only expecting about $2.98. If Baker is right, the LUV stock price today is actually a massive bargain.
But there’s a catch.
Execution is everything. Changing the entire boarding process and seating layout of hundreds of Boeing 737s while they are still flying is like trying to change the tires on a car while it's going 70 mph on the highway.
What’s dragging the price down right now?
Not everyone is convinced. While Southwest is up about 34% year-over-year, it’s been a bumpy week.
On Tuesday, Delta Air Lines (DAL) released a 2026 outlook that was, frankly, a bit of a buzzkill. Delta warned that it's getting harder and harder to make money just by flying people. They are leaning more on their credit card deals with American Express to keep the lights on.
When Delta—the supposed "gold standard" of the industry—looks shaky, it pulls everyone else down. That’s why you’re seeing LUV slip today alongside American Airlines.
Key Stats to Watch
- 52-Week High: $45.02
- 52-Week Low: $23.82
- Current Market Cap: Approximately $22 billion
- Dividend Yield: Around 1.69%
The stock is currently trading near its three-year high. That makes some traders nervous. The Relative Strength Index (RSI) is sitting at 74.81, which basically means the stock is "overbought." Usually, when a stock gets that hot, it needs to cool off before it can climb higher.
The Elliott Management Factor
You can't talk about Southwest without mentioning the activist investors at Elliott Investment Management. They spent most of 2024 and 2025 breathing down the neck of CEO Bob Jordan. They wanted heads to roll and the business model to flip.
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They got their wish.
Most of the "pro-investor" changes we see today—like assigned seating—were pushed for by Elliott. It’s a classic turnaround story. The market loves these because the "narrative" is easy to sell. But for those of us actually watching the LUV stock price today, the question is whether the "Southwest Heart" brand survives when it starts acting like every other legacy carrier.
A different perspective: The "Bags Fly Free" risk
One thing people often overlook is the "Bags Fly Free" policy. Southwest hasn't killed it yet, but the pressure is mounting. If they eventually start charging for bags to juice their 2026 earnings, they risk alienating their most loyal fans.
I’ve seen this happen before. An airline chases margins and loses its soul.
If you're a long-term holder, you're looking for the January 29 earnings call. That is the "Positive Catalyst" everyone is waiting for. That's when we get the official 2026 guidance. If Bob Jordan stands up and confirms that $5 EPS target, the stock could blast past $50. If he hedges his bets? Expect a sharp correction back to the $30s.
Actionable Insights for Investors
If you're looking at the LUV stock price today and wondering what to do, keep these steps in mind:
- Watch the $43 level. This has been a sticky point of "resistance." If the stock can stay firmly above $43 for a few days, it’s a bullish sign.
- Mark January 29 on your calendar. This is the make-or-break day for the 2026 transformation narrative.
- Monitor fuel costs. Southwest has largely stopped its aggressive fuel hedging. This means if oil prices spike due to global tension, Southwest’s profits will get hit much harder than they used to.
- Look at the JETS ETF. If you want exposure to the airline recovery but find Southwest too volatile, look at the broader industry exchange-traded funds.
Southwest is no longer just a "boring" airline stock. It’s a high-stakes experiment in corporate transformation. Whether the $60 price target is a pipe dream or a reality depends entirely on how many people are willing to pay for that extra legroom this spring.
Keep a close eye on the volume. Today’s dip is minor, but the trend for 2026 is still pointing up. Just don't expect a smooth flight.
The next two weeks will be the real test. Watch the earnings guidance like a hawk. If the company hits its milestones for the January 27 rollout of assigned seating, the momentum could be unstoppable. However, any technical glitch in the ticketing system or delay in the cabin retrofits will likely cause a quick sell-off. Manage your risk accordingly and don't get blinded by the analyst hype.