Southwest Airlines Stock: Is the Post-Pandemic Surge Worth Buying?

Southwest Airlines Stock: Is the Post-Pandemic Surge Worth Buying?

Southwest Airlines (LUV), the largest domestic carrier in the country, closed at $36.99 in today's trading session, closing down almost 2%. However, most airline stocks have experienced a surge in their prices in the past week, as the airline sector gets relaxed, which was otherwise affected since COVID-19 started.

LUV is currently enjoying the high air travel demand and strong liquidity, which points to a strong future outlook. Factors such as a high earnings-per-share growth rate, northward estimate revisions, and high demand for air travel raise optimism about the stock and make it a potentially attractive investment. We are bullish on LUV stock.

The airline industry has suffered due to the pandemic-led headwinds. However, this year has proved beneficial for airline companies due to the robust demand for air travel. In March, Southwest and other airlines requested President Joe Biden to ease the testing requirements and masking formalities for international travelers. The request has been partially approved, which could result in a boost in demand for travel.