Southwest Airlines (LUV) 2Q26: Strong 2Q beat, weaker than expected 3Q and back-end loaded FY guide

研报英文原文证据摘录

Southwest Airlines (LUV) 2Q26: Strong 2Q beat, weaker than expected 3Q and back-end loaded FY guide

h in the marketplace, intensified competition among carriers, upward volatility in fuel.

Upside risk is that the MAX return is smoother than expected and attempts to optimize the network are successful enough to offset

both lower utilization of aircraft and a suboptimal fleet caused by delays of MAX 7 aircraft. Other upside risks include a faster than

expected transformation of the in-cabin product, higher than expected rationalization of under-performing low cost capacity, and

a significant uplift in the economy.

RATINGS DEFINITIONS, BENCHMARKS AND DISTRIBUTION

EQUITY RATINGS DEFINITIONS

Bernstein brand

The Bernstein brand rates stocks based on forecasts of relative performance for the next 12 months versus the S&P 500 for

stocks listed on the U.S. and Canadian exchanges, versus the Bloomberg Europe Developed Markets Large and Mid Cap Price

Return Index EUR (EDME) for stocks listed on the European exchanges and emerging markets exchanges outside of the Asia

Pacific region, versus the Bloomberg Japan Large and Mid Cap Price Return Index USD (JPL) for stocks listed on the Japanese

exchanges, and versus the Bloomberg Asia ex-Japan Large and Mid Cap Price Return Index (ASIAX) for stocks listed on the Asian

(ex-Japan) exchanges -unless otherwise specified.

The Bernstein brand has three categories of ratings:

• Outperform: Stock will outpace the market index by more than 15 pp

• Market-Perform: Stock will perform in line with the market index to within +/-15 pp

• Underperform: Stock will trail the performance of the market index by more than 15 pp

Coverage Suspended: Coverage of a company under the Bernstein research brand has been suspended. Ratings and price targets