Analysis of Southwest Airlines: one of the few airlines to offer a dividend

The airline has had a difficult 5 years. First the global lockdown and then high inflation which prevented many people from travelling. Despite this, some airlines seem to be doing well. Will they continue to do so?

Southwest Airlines $LUV is an American low-cost airline based in Dallas. Founded in 1967, it is the largest low-cost airline in the world as measured by the number of passengers carried.

Southwest has one of the lowest costs per seat in the industry. Thanks to its efficient operations and simple operating model, it is able to offer low fares. Southwest has a very loyal customer base that values low fares, a great customer experience and free baggage.

Southwest also has a strong balance sheet and generates strong operating cash flow that allows it to invest in growth and remain financially stable during difficult times. Southwest operates only within the U.S. and its routes are focused on smaller cities and regional airports. It lacks a network of international and long-haul…