Southwest Airlines Co

LUV remains in a Stage 2 advancing regime within its long-term uptrend. While a bullish exhaustion pattern signals fading momentum, an active Lockout Rally indicates institutional demand and short covering, justifying immediate participation. The medium-term bias stays bullish; execution focuses on continuation with support at the rising 9/21 EMA zone.

• ↑Assigned seating and extra legroom to generate over $1 billion EBIT by 2026.
• ↑Q1 2026 operating revenue hit a record $7.2 billion; unit revenue rose 11.2% YoY.
• ↓Average fuel cost of $2.73/gal poses significant margin headwinds.