Betheul Best
Business Analytics Report: Southwest Airlines
Anfernee
4/23/2026
Company Overview
Southwest Airlines is a major U.S. low-cost carrier
The company was founded in 1967 and began operations in 1971
Its model focuses on low-cost, point-to-point air travel (Ellis & Wright, 2025).
The airline is known for employee-centered culture and customer service (Han, 2023).
Southwest mainly serves North America and selected nearby international routes
Southwest Airlines is one of the best-known low-cost airlines in the United States. Since beginning operations in 1971, the company has built its identity around affordable fares, high aircraft use, and efficient short-haul and medium-haul travel. A major feature of its strategy is the point-to-point route model, which differs from the hub-and-spoke systems used by many legacy airlines. This helps reduce delays and simplify operations. Southwest is also widely recognized for its employee-focused culture, which has supported customer satisfaction and service consistency over time. In business terms, the company stands out because it has remained committed to a simple and focused operating model instead of diversifying too broadly. That consistency helps explain why Southwest remains a strong player in the domestic airline market.
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Industry Context and Current Relevance
The airline industry is highly competitive and cost-sensitive
Performance is affected by fuel prices, labor costs, and demand changes (Heiets & Xie, 2021)
COVID-19 caused severe disruption across aviation
Southwest has invested in technology and operational reliability
Domestic recovery supported Southwest’s recent stabilization
Southwest operates in an industry that is highly exposed to external shocks. Airline companies must manage fuel prices, labor expenses, economic slowdowns, and sudden shifts in customer demand. These pressures became especially visible during the COVID-19 pandemic, when air travel collapsed and airline stocks fell sharply. Since then, Southwest has worked to strengthen its systems and improve reliability. This is especially important because the company faced criticism after operational breakdowns in 2022 and 2023. Recent efforts to improve scheduling systems, communication tools, and infrastructure show that management is trying to address those weaknesses directly. Southwest also benefited from the faster recovery of domestic travel compared with international travel. This matters because the airline’s business is strongly concentrated in domestic routes, which helped it stabilize more quickly than some competitors.
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Competitor Comparison Table
Summary table of the most recent available data (Nasdaq. (2026a), (Nasdaq, 2026b), (Nasdaq, 2026c).
| Metric (Most Recent Year) | Southwest Airlines (LUV) | JetBlue Airways (JBLU) | Allegiant Travel Co. (ALGT) |
| Market Share (US Domestic) | ~17–18% | ~5–6% | ~2–3% |
| Total Sales (Revenue) | ~$26 bn | ~$9 bn | ~$2.5 bn |
| Number of Employees | ~75,000 | ~24,000 | ~6,000 |
| Total Assets | ~$35 bn | ~$15 bn | ~$5 bn |
Southwest leads these competitors in scale and market presence
Competitor differences reflect different low-cost strategies
This comparison shows that Southwest is much larger than JetBlue and Allegiant across major business indicators. It has the highest domestic market share, the largest workforce, the strongest revenue base, and the greatest asset size among the three firms. These differences matter because size often supports stronger route coverage, more operational flexibility, and greater brand visibility. JetBlue follows a somewhat different model by offering more comfort-related services, which can attract customers but also raise costs. Allegiant uses an even narrower ultra-low-cost model that targets specific markets and depends more heavily on add-on fees. Southwest’s advantage is that it combines the low-cost model with much greater scale than its two rivals. This supports the view that Southwest has a stronger overall competitive position, especially for organizations or investors that value consistency and reach rather than niche growth alone (Nasdaq, 2026a; Nasdaq, 2026b).
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Southwest Highest Daily Stock Price with 60-Day Moving Average
Daily high prices show long-term movement in investor expectations
A sharp decline appears around the 2020 pandemic period
The 60-day moving average smooths short-term volatility
The trend line suggests moderate long-term growth
Recovery after the shock indicates improving confidence over time.
Graphic 1: Southwest Highest Daily Stock Price with 60-Day Moving Average: Scatter Plot (Nasdaq, 2026a).
This graph focuses on Southwest’s highest daily stock prices over the 10-year period. The main pattern is a long-term upward direction interrupted by a major decline during the COVID-19 period (Heiets & Xie, 2021). That sharp drop is consistent with the broad shock the airline industry experienced when travel demand collapsed. After that period, the company begins to recover, although the recovery is uneven rather than perfectly smooth. The 60-day moving average is useful because it reduces the noise from daily fluctuations and makes the broader trend easier to see. The trend line also helps summarize the full period by showing that the stock generally moved upward over time despite setbacks. In business terms, this suggests that the company faced disruption but still maintained enough strength and market confidence to recover rather than remain in decline.
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Southwest Lowest Daily Stock Price with 60-Day Moving Average
Lowest daily prices highlight downside risk exposure
The pandemic period shows the most severe decline
The post-shock rebound suggests resilience
The moving average shows recovery without relying on single-day spikes
The overall trend remains positive over the full period
Southwest Lowest Daily Stock Price with 60-Day Moving Average: Scatter Plot (Nasdaq, 2026a).
While the previous graph focused on daily highs, this graph emphasizes the lowest daily prices and therefore gives a clearer view of risk. It shows how far the stock fell during periods of stress, especially during the pandemic. This is important because it reflects the downside pressure investors were willing to accept in response to industry uncertainty. However, the graph also shows that the stock did not remain at those depressed levels for long. Instead, it gradually recovered, which signals resilience and returning investor trust (Gite et al., 2021). The moving average makes that recovery pattern easier to identify because it smooths extreme daily lows. Overall, this graph suggests that Southwest does face industry risk, but it has demonstrated the ability to recover from major negative events more effectively than a severely unstable company would.
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Competitor Stock Comparison: Southwest, JetBlue, and Allegiant
Southwest’s stock pattern is steadier than JetBlue’s
Allegiant’s prices are higher at times but more volatile
All three firms were affected by industry-wide shocks
Recovery patterns differ across the competitors
Southwest appears more balanced in stability and performance
Competitor Comparison Scatter Plot (Nasdaq, 2026a) (Nasdaq, 2026b) (Nasdaq, 2026c).
This competitor graph compares the stock behavior of Southwest, JetBlue, and Allegiant over the same general period. One important finding is that Southwest appears steadier than JetBlue, which shows more pronounced volatility and a less consistent recovery pattern. Allegiant sometimes reaches higher stock price levels, but those movements are also more unstable, suggesting greater sensitivity to changing market conditions (Dhingra et al., 2024). The graph also shows that all three airlines reacted to major industry events, especially the pandemic, which confirms that external conditions affect the whole sector rather than a single company. Even so, the paths of recovery are not identical. Southwest’s more balanced recovery suggests stronger resilience and steadier investor confidence (Dhingra et al., 2024). This matters because a company that combines recovery, consistency, and scale is often more attractive than one that only offers sharper but riskier price movements.
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Closing Price Distribution: Histogram
Most closing prices fall within a middle range
Extreme highs and lows appear less frequently
The pattern suggests moderate rather than extreme volatility
A stable trading range can reduce uncertainty for investors (Li et al., 2023)
The distribution supports the view of balanced stock behavior
Southwest Closing Price Distribution: Histogram (Nasdaq, 2026a)
This histogram shows how often Southwest’s closing prices fell within different ranges over the 10-year period. Most observations are concentrated in the middle, which suggests that the stock traded within a fairly consistent band for much of the time. Extreme low and high prices occurred less frequently, which means that major price shocks were the exception rather than the rule. This is useful because it supports the argument that Southwest has moderate volatility instead of highly unstable price behavior. For investors and business decision-makers, that kind of distribution can be attractive because it suggests a more predictable pattern of value over time. In simple terms, the graph reinforces the idea that Southwest’s stock behavior was dynamic but still relatively controlled.
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Descriptive Statistics – Closing Price
Daily Closing Price Statistics (10 Years – Southwest Airlines)
| Statistic | Value |
| Mean | 43.41 |
| Median | 42.80 |
| Mode | No single mode (varies) |
| Standard Deviation | 11.12 |
| Variance | 123.59 |
| Range | 44.06 |
| Minimum | 22.23 |
| Maximum | 66.29 |
| Count | 2,513 |
These values suggest stability with moderate variability
These descriptive statistics summarize the closing price behavior of Southwest stock over the full dataset. The mean and median are very close, which suggests that the values are fairly balanced and not strongly distorted in one direction. That supports the interpretation that the stock typically traded near a central range rather than staying unusually high or low for long periods. The standard deviation of 11.12 indicates that the stock did experience movement, but not at a level that suggests extreme unpredictability. The range is broad, moving from 22.23 to 66.29, which reflects the effect of major events such as the pandemic and later recovery (Li et al., 2023). Together, these numbers show a stock that changes over time but remains reasonably stable. That combination of movement and control supports the conclusion that Southwest offers moderate risk rather than excessive uncertainty.
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Descriptive Statistics – Trading Volume
Daily Trading Volume Statistics (10 Years – Southwest Airlines)
| Statistic | Value |
| Mean | 7,684,417 |
| Median | 6,449,428 |
| Mode | No single mode (varies) |
| Standard Deviation | 5,536,461 |
| Variance | 3.06 × 10¹³ |
| Range | 99,909,434 |
| Minimum | 1,098,366 |
| Maximum | 101,007,800 |
| Count | 2,513 |
The data indicate active trading and strong liquidity
Trading volume helps explain investor activity rather than price alone. Southwest’s average daily trading volume is high, which indicates that the stock is actively traded and has good liquidity. The median is lower than the mean, which suggests that a limited number of very high-volume days pulled the average upward. That is common in financial markets because major announcements, shocks, or earnings reports can create sudden bursts of activity. The large standard deviation and very wide range confirm that trading activity varies considerably from day to day. However, this variability does not automatically mean weakness. In fact, regular and active trading often signals continued investor interest. For business interpretation, these figures suggest that Southwest is a relevant and visible stock in the market, with sufficient liquidity to attract ongoing participation from investors (Nasdaq, 2026a; Gite et al., 2021).
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Analyst Commentary
Analysts describe Southwest’s outlook as cautiously optimistic
Operational upgrades are viewed as a positive strategic response (Zhang, 2025)
Domestic travel exposure supported recovery after the pandemic (Yahoo Finance, 2026)
Technology investment may improve reliability and customer experience
Risks remain from fuel, labor, and competition
Analyst commentary adds useful context beyond the raw data. Reports cited in the original analysis suggest that Southwest is viewed with cautious optimism rather than blind confidence. A major reason is the company’s effort to fix operational weaknesses through system upgrades and improved coordination tools. Analysts appear to see this as a constructive response to earlier disruptions rather than a superficial change. Southwest’s strong position in domestic travel also supported recovery because domestic demand returned faster than international demand in the post-pandemic period. At the same time, the company still faces major industry risks, including fuel price pressure, labor costs, and intense competition. Overall, analyst perspectives align with the data findings: Southwest is not risk-free, but it appears comparatively stable, responsive, and strategically focused in a volatile industry.
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Conclusion and Recommendation
Southwest shows long-term stability despite industry shocks
Graphics and statistics both support moderate volatility
Competitor analysis shows stronger balance than JetBlue and Allegiant
Active trading volume signals continued investor interest
Southwest is recommended as the stronger option for investment or partnership
The overall conclusion from this analysis is that Southwest Airlines presents a strong balance of stability, resilience, and market relevance. The stock visuals show that the company experienced significant disruption, especially during the pandemic, but also recovered in a structured and credible way. The descriptive statistics reinforce that view by showing moderate volatility rather than extreme instability. When compared with JetBlue and Allegiant, Southwest appears more balanced in terms of scale, recovery, and consistency. Its trading volume also indicates sustained investor attention and strong liquidity. Based on these findings, Southwest is the stronger choice for organizations or investors seeking a more reliable airline partner rather than a more speculative one. The recommendation is therefore to favor Southwest for investment or partnership because it combines operational focus, market scale, and comparatively steady performance over time.
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Discussion and Questions
Which risk is most important for Southwest going forward?
Does stability matter more than higher but riskier returns?
How should management respond to future operational shocks?
Thank you for your attention
Any questions?
This final slide opens the presentation for discussion. Based on the analysis, there are several useful questions for the audience to consider. One is whether Southwest’s moderate and stable performance makes it more attractive than competitors with sharper but less predictable stock behavior. Another is how much future risk could come from fuel prices, labor pressures, or renewed operational disruption. A further question is whether Southwest’s investments in systems and reliability will be enough to strengthen long-term confidence. These questions help connect the data to practical business thinking. Thank you very much for your attention and engagement. I welcome any questions, comments, or alternative interpretations of the findings presented here.
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References
Dhingra, B., Batra, S., Aggarwal, V., Yadav, M., & Kumar, P. (2024). Stock market volatility: a systematic review. Journal of Modelling in Management, 19(3), 925- 952.
Ellis, L., & Wright, J. (2025). Case Study: Culture Over Strategy and Southwest’s Key to Competitive Advantage. Journal for Excellence in Business and Education, 9(1).
Gite, S., Khatavkar, H., Kotecha, K., Srivastava, S., Maheshwari, P., & Pandey, N. (2021). Explainable stock prices prediction from financial news articles using sentiment analysis. PeerJ Computer Science, 7, e340.
Han, X. (2023, June). Hedging Strategy Analysis of Southwest Airlines. In Proceedings of the 6th International Conference on Economic Management and Green Development (pp. 627-633). Singapore: Springer Nature Singapore.
Heiets, I., & Xie, Y. (2021). The impact of the COVID-19 pandemic on the aviation industry. Journal of Aviation, 5(2), 111-126.
Li, Z., Yu, H., Xu, J., Liu, J., & Mo, Y. (2023). Stock market analysis and prediction using LSTM: A case study on technology stocks. Innovations in Applied Engineering and Technology, 1-6.
Nasdaq. (2026a). Southwest Airlines Co. stock statistics & data. Retrieved April 12, 2026, from https://www.nasdaq.com/market-activity/stocks/luv
Nasdaq. (2026b). JetBlue Airways Corporation Common Stock (JBLU) – Nasdaq Stock Market. Retrieved April 13, 2026, from https://www.nasdaq.com/market- activity/stocks/ jblu
Yahoo Finance. (2026). Southwest Airlines Co. (LUV) historical prices & data. Retrieved April 12, 2026, from https://finance.yahoo.com/quote/LUV/history/
Zhang, H. (2025). Cost-Efficient Operating Models in the Airline Industry: A Case Study of Southwest Airlines. In 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025) (pp. 488-493). Atlantis Press.