Southwest's premium pivot is showing up in the numbers: industry-leading revenue growth and a fivefold profit increase year-to-date as extra legroom, lounges and cobranded cards come online. Tim Dunn

What happened: Southwest Airlines ($LUV) is executing a business model transformation, with the analyst maintaining a Buy rating on the stock. Why it matters: The pivot toward premium revenue channels, including extra legroom seating, lounges, and cobranded credit cards, positions $LUV closer to legacy carrier models, and the analyst expects continued strong revenue growth as the transformation advances.

Southwest Airlines ($LUV) is executing a business model transformation, with the analyst maintaining a Buy rating on the stock.

The pivot toward premium revenue channels, including extra legroom seating, lounges, and cobranded credit cards, positions $LUV closer to legacy carrier models, and the analyst expects continued strong revenue growth as the transformation advances.