Southwest Airlines Dropped 20.89% in a Month as $104 Oil Threatens Its $4.00 EPS Target

Southwest Airlines shares dropped 22% over the past month after the carrier began its most sweeping operational overhaul in history, as a surge in oil prices threatens its earnings thesis. The oil-driven fuel-cost headwind increases downside risk to 2026 profitability and investor confidence despite the strategic operational changes.

Analysis

Southwest Airlines shares dropped 22% over the past month after the carrier began its most sweeping operational overhaul in history, as a surge in oil prices threatens its earnings thesis. The oil-driven fuel-cost headwind increases downside risk to 2026 profitability and investor confidence despite the strategic operational changes.