Southwest Airlines (LUV) News Today

Southwest Airlines Co. (NYSE: LUV)

• Legal relief: The U.S. Department of Transportation under the Trump administration dropped a Biden-era lawsuit accusing Southwest of chronic flight delays. Removing this overhang has boosted investor confidence in the carrier’s operational outlook.
• Analyst upgrades: Seaport Research Partners raised its Q2 2025 EPS estimate for Southwest from $0.50 to $0.55 and issued a positive full-year outlook. Improved earnings forecasts underpin expectations of stronger profitability.
• Dividend reinstated: Southwest announced a quarterly dividend of $0.18 per share—its first regular payout since the pandemic—signaling healthy cash flow and management’s confidence in sustaining distributions.
• Insider & institutional buying: MUFG Securities Americas acquired 8,853 shares of LUV in Q4, and recent filings show insiders scooping up stock, suggesting those closest to the business expect further upside.
• Policy adjustments:
  • Starting May 28, passengers must keep portable battery chargers in plain sight mid-flight amid lithium-battery fire concerns—a safety move that could become industry standard.
  • Southwest is ending certain free-checked-bag perks on new bookings to bolster ancillary revenue, a shift that may lift margins but risks some customer backlash.

Overall, the combination of legal wins, upward earnings revisions and a reinstated dividend has driven LUV shares higher, even as investors monitor customer reactions to recent policy changes.