Southwest Airlines (LUV) clears aviation regulator’s safety test

The US Federal Aviation Administration (FAA) has completed its evaluation of Southwest Airlines (LUV), concluding that there are no significant safety concerns. The assessment began in July 2024 and followed a series of incidents that had raised questions about the airline’s safety protocols.

The FAA’s review was prompted by a series of troubling incidents, including a Southwest flight that flew just 400 feet above sea level near the coast of Hawaii, 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 ordered additional training for its pilots and reaffirmed its commitment to prioritize safety.

FAA review of Southwest Airlines points to increased scrutiny

The FAA’s review of Southwest Airlines comes after a similar review of United Airlines, which also found no significant safety issues. It is important to note that the FAA initiated a six-month review in March 2024 in response to a number of safety incidents.

Those investigations reflect the FAA’s increased scrutiny of U.S. airlines after several serious accidents in recent months, most notably 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 recent incidents.

Is LUV a good buy now?

As for 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 downside potential of 0.31%. Shares in the company are up around 14.5% year to date.

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