$LUV

Southwest Airlines (LUV) is revamping its Rapid Rewards loyalty program, effective Jan. 1, 2027. New elite status tiers (Silver, Gold, Platinum) will replace existing ones, with adjusted qualification requirements. The program introduces Milestone Rewards and changes to the Companion Pass benefit. According to the company, these updates aim to reward members more meaningfully while maintaining simplicity. The changes may impact frequent flyers and credit cardholders differently.

Southwest Airlines (LUV) will report Q3 earnings on October 21, 2026. Analysts expect $0.57 EPS and $8.24B revenue, but 16 EPS estimates were revised downward. The company faces rising fuel costs and cash-flow challenges, with a P/S ratio of 0.69 below its historical median. Its GF Score is 85/100, reflecting solid fundamentals despite near-term headwinds.

Etihad Airways and Southwest Airlines (LUV) have agreed to link their loyalty programs, Etihad Guest and Rapid Rewards, starting in spring 2027. Members can earn and redeem miles/points on eligible flights across both carriers' networks. The partnership aims to enhance passenger experiences and expand destination access for both programs' members.

UBS reduced its price target for Southwest Airlines from $53 to $52 but maintained a buy rating. The airline recently announced new rewards programs. The stock is trading at $40.92, up 0.22% on the day but down 1.28% year-to-date.

Southwest Airlines is reportedly considering Boeing's 787 Dreamliner for its first widebody jets to expand into long-haul international flights, according to sources cited by Reuters. The airline has not made a final decision, and the choice will be made by its board. Southwest currently operates an all-Boeing 737 fleet but is also evaluating Airbus aircraft for future needs. The move could intensify competition with larger U.S. airlines.

Southwest Airlines plans to offer SpaceX's Starlink internet service across its entire fleet by fall 2027, becoming the first major US airline to do so. The service will be free for Rapid Rewards members. Southwest aims to equip over 300 aircraft by the end of 2026. The airline is also expanding its loyalty program and partnerships in 2027.

Southwest Airlines plans to open its first airport lounges, called Southwest Icon Lounge, in late 2027 in Austin, Baltimore, Honolulu, and Nashville. Each lounge will feature locally inspired designs and a golden-hour-inspired bar. Access will be available through a new premium credit card from Chase, with additional access methods to be revealed later. The lounges are part of Southwest's push for a more premium travel experience.

TheTravel's analysis of Cirium data shows ultra-low-cost carriers reducing departure seat capacity at Hartsfield-Jackson Atlanta International Airport (ATL) by 25% in Q1 2027 vs. 2026, with Spirit Airlines and Southwest Airlines cutting the most seats. Delta, American, United, and JetBlue are increasing capacity. Avelo Airlines is adding seats. Other Southern U.S. airports see mixed changes.

Boeing's MAX 8 is replacing the 737-800, with airlines like JAL and Malaysia Airlines ordering MAX 8s for this purpose. The MAX 8 offers 14-15% better fuel economy and extended range. Some airlines, like KLM and Qantas, are switching to Airbus models. Boeing and Turkish Airlines finalized an order for up to 150 MAX aircraft, including 100 firm MAX 8s. Boeing delivered 4,991 737-800s, with over 4,785 MAX 8s ordered as of January 2026.

Southwest Airlines is considering the Boeing 787 for potential long-haul international flights, a shift from its current all-Boeing 737 fleet. The decision is pending and requires board approval. The airline operates 823 aircraft, all of which are 737 variants.