Southwest Beats Nasdaq Over One Year, Trails in 2026

Southwest Airlines shares rose 28.4% over the year to September 22, topping the Nasdaq Composite’s 19.8% gain. But the airline’s stock lagged the index over both the past three months and 2026 so far, according to Barchart’s comparison.

LUV fell 12.9% over three months, while the Nasdaq gained 2.3%. Year to date, Southwest was down 1.1% against the index’s 16.7% rise. The figures show how a strong longer-term return can mask a weaker recent stretch.

Southwest shares also stood 24.2% below their 52-week high of $55.11. The gap widened as the stock traded below its 50-day and 200-day moving averages, which track average prices over those periods.

The airline’s business has shown signs of improvement. Southwest reported record second-quarter operating revenue of $8.4 billion, up 16.4% from a year earlier, and said adjusted earnings per share were 94 cents.

Fuel remains a major risk for the carrier. Southwest’s fuel expense rose $889 million year over year in the second quarter, though the company still raised its full-year adjusted earnings-per-share outlook to $3.25 to $4.25.

The airline is also investing in new revenue sources and customer offerings. It plans its first airport lounges with Chase, with openings expected in Austin, Baltimore, Honolulu and Nashville starting in late 2027.

Investors will get another look at the turnaround when Southwest reports third-quarter results. Its financial-results conference call is scheduled for October 22, with costs, fuel prices and demand likely to shape the outlook.

The one-year comparison favors Southwest, but the shorter-term numbers point to the challenge: sustaining earnings gains while operating costs and market expectations remain in focus.