EL7.AI
StocksMedium•31 March 2026•
1 min read

Major Banks Cut Southwest Airlines Price Targets Amid Rising Fuel Costs

Key Facts

1UBS lowered its price target for Southwest Airlines from $59 to $56 while maintaining a Buy rating.
2Citi significantly cut its price target for LUV from $54 to $44.
3The cuts are attributed to rising jet fuel prices pressuring profit margins and earnings estimates through 2026.

Major financial institutions, including UBS and Citi, have lowered their price targets for Southwest Airlines (LUV) due to increasing operational pressures. UBS reduced its target price from $59 to $56 while maintaining a "Buy" rating on the stock. Citi took a more aggressive stance, significantly cutting its price target from $54 to $44, reflecting growing concerns over the company's profitability. These downward revisions are primarily attributed to rising jet fuel prices, which are directly squeezing profit margins. Analysts noted that these elevated costs are expected to weigh on earnings forecasts through 2026. The move reflects broader concerns within the aviation sector regarding the impact of volatile energy costs on long-term financial performance.