Bank of America keeps Sell on Southwest Airlines stock

Published on 10/07/2026 at 07:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter 2026 revenue rose 16.40 percent to USD 8.43 billion. Southwest Airlines stock is valued at USD 20.8 billion on October 6, 2026.

Bauhaus-Grafikposter AIRLINE mit geometrischer Flugzeugsilhouette in Primärfarben — Southwest Airlines Luftfahrt Branche als geometrisches Bauhaus Poster mit Flugzeug Silhouette dargestellt ISIN US8447411088, Illustration mit AI erstellt.

Southwest Airlines (ISIN US8447411088) generated USD 8.43 billion in revenue in the second quarter of 2026, up 16.40 percent from USD 7.24 billion a year earlier, according to DWU AI. The latest analyst action adds a more cautious counterweight: Markets Insider reported on October 5, 2026, that Bank of America Securities maintained a Sell rating and a USD 43.00 price target.

Revenue growth meets fuel pressure

The June quarter produced GAAP net income of USD 233.0 million and diluted earnings per share of USD 0.47, compared with USD 213.0 million of net income a year earlier, according to DWU AI. That combination matters because the revenue gain came with essentially flat capacity, pointing to stronger fares and mix rather than a simple expansion of flying.

Fuel remains the pressure point. Fuel cost per gallon rose 69.00 percent year over year to USD 3.92 in the second quarter, while the company cut full-year 2026 adjusted earnings guidance to USD 3.25-4.25 per share from at least USD 4.00, according to DWU AI. For investors, the key trade-off is visible in the same quarter: reported operating margin was 3.40 percent, while the margin excluding special items was 6.70 percent.

Sell rating sets a lower bar

Bank of America Securities analyst Andrew Didora kept the Sell rating on October 5, 2026, and set the target at USD 43.00, as Markets Insider reported. That target sits below the USD 49.40 average 12-month target compiled from 23 analysts by Investing.com on October 1, 2026.

The next scheduled reporting event is the third-quarter 2026 financial results conference call on October 22, 2026, according to Southwest Airlines. The date gives the market a clear checkpoint for whether double-digit revenue growth can continue while fuel and fleet spending weigh on profitability.

NYSE quote and euro reference

Southwest Airlines was last at USD 42.45 on the NYSE on October 6, 2026 at 4:00 p.m. ET, with a USD 20.8 billion market capitalization and a 52-week range of USD 29.26 to USD 55.11. The Lang & Schwarz prior close was EUR 37.50 on October 5, 2026. The further course of trading is shown by the continuously updated real-time quote of Southwest Airlines stock.