This Work Project consists of an Equity Research report of Southwest Airlines Co., forecasting the future company’s performance. Currently, the company is one of the market leaders and has a higher operating margin than the industry. However, the arising of low-cost and ultra-low-cost airlines will increase the industry’s price pressure. Moreover, the company will face operating costs management challenges in the future, mainly related to labor and fuel, which will affect its operating margin, enhancing the company’s concerns regarding increasing operational measures. Hence, it was issued a “Hold” recommendation, estimating a price target of $58.76, as of December 2020
