12:45 PM EDT, 06/01/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Oil prices have retreated ~15% from May's $108 high. We upgrade LUV to Hold from Sell, raise our price target by $10 to $43, and lift our 2027 EPS estimate to $4.52 from $3.65 while keeping 2026's at $2.79. Our target reflects 9.5x our 2027 EPS (from 9x our 2026 EPS). Although oil remains a key variable, we have grown more optimistic on LUV-specific drivers, including traction on its new pricing model (Q1 unit revenue +11.2% Y/Y), which could boost revenue growth in the high teens alongside higher airfare. A shift away from open seating could improve LUV's ability to capture higher-yielding corporate and premium travel, an area that has benefited peers. Similar to peers, LUV noted Q1 demand trends across geographies and customer segments remain strong, supporting our view that accelerating revenue can offset fuel headwinds. Our Hold rating and high-single-digit multiple reflect that the new model still needs to prove out on profitability and oil volatility remains a risk.