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

The FAA’s review was prompted by a series of concerning incidents, including a Southwest plane flying just 400 feet above sea level near the Hawaiian coast, a low-level 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 reiterated its commitment to prioritizing safety.

Southwest Airlines’ FAA rating suggests increased scrutiny

The FAA’s review of Southwest Airlines follows 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 series of safety incidents.

These investigations reflect the FAA’s increased scrutiny of U.S. airlines following several serious accidents in recent months, most notably after a door-sized panel was blown off a Boeing (BA) plane shortly after takeoff in January. The FAA’s ratings help reassure passengers of U.S. airlines’ overall safety standards despite recent incidents.

Is LUV a good buy now?

As for Wall Street, LUV has a consensus rating of Hold based on four Buys, 10 Holds, and two Sells assigned over the past three months. At $32.37, Southwest Airlines’ average price target implies a downside potential of 0.31%. The company’s shares have gained about 14.5% since the beginning of the year.

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