The U.S. Federal Aviation Administration (FAA) has completed its evaluation of Southwest Airlines (LUV), concluding there are no significant safety concerns. Initiated in July 2024, the assessment followed a series of incidents that had raised questions about the airline’s safety protocols.
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The FAA’s review was prompted by a number of troubling incidents, including a Southwest plane that flew just 400 feet above the ocean near the Hawaiian coast, a low-altitude flight over Tampa Bay, Florida, and a takeoff from a closed runway in Portland, Maine.
In response to these incidents, Southwest Airlines has mandated additional training for its pilots and reaffirmed its commitment to prioritizing safety.
FAA’s Review of Southwest Airlines Points to Increased Scrutiny
The FAA’s review of Southwest Airlines comes after a similar assessment of United Airlines, which also found no significant safety issues. It’s important to note that the FAA initiated a six-month review in March 2024 in response to a series of safety incidents.
These probes reflect the FAA’s increased scrutiny of U.S. airlines following several serious accidents in recent months, particularly after a door-sized panel blew off a Boeing (BA) plane shortly after takeoff in January. The FAA’s reviews help reassure passengers about the overall safety standards of U.S. airlines despite the recent incidents.
Is LUV a Good Buy Now?
Turning to Wall Street, LUV has a Hold consensus rating based on four Buys, 10 Holds, and two Sells assigned in the last three months. At $32.37, the average Southwest Airlines price target implies a 0.31% downside potential. Shares of the company have gained about 14.5% year-to-date.
