Is LUV (Southwest Airlines Co.) Halal or Haram?
Southwest Airlines presents a doubtful profile for Islamic investors due to its debt-to-market cap ratio sitting exactly at the 33.0% threshold, triggering a failure under strict AAOIFI guidelines. Fortunately, its business operations are permissible, and it comfortably passes the remaining financial screens with interest income at just 0.73% of revenue and cash reserves at 17.8%.
Price Chart (5D)
LUV — Last 7 Days
| Date | Open | High | Low | Close | Volume | Change |
|---|---|---|---|---|---|---|
| 2026-06-09 | 41.94 | 42.72 | 41.02 | 42.47 | 2.9M | +1.26% |
| 2026-06-08 | 41.54 | 41.78 | 40.90 | 41.02 | 5.1M | -1.25% |
| 2026-06-05 | 41.30 | 41.86 | 41.00 | 41.54 | 4.9M | +0.58% |
| 2026-06-04 | 41.63 | 42.30 | 41.05 | 41.31 | 4.6M | -0.77% |
| 2026-06-03 | 41.54 | 42.16 | 40.82 | 40.87 | 5.8M | -1.61% |
| 2026-06-02 | 42.60 | 42.96 | 41.98 | 42.34 | 4.3M | -0.61% |
| 2026-06-01 | 42.37 | 42.88 | 41.50 | 42.76 | 5.6M | +0.92% |
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Shariah Screening Details for LUV
Business Activity
Permissible
Southwest Airlines passes the business activity screen as its core operations of providing scheduled passenger air transportation and inflight services are broadly permissible under Islamic principles.
Debt / Market Cap
33.02%
Interest Income
0.73%
Cash & Securities
17.84%
About Southwest Airlines Co. (LUV)
Southwest Airlines Co. operates as a major passenger airline, providing scheduled air transportation across the United States and near-international markets like Mexico and the Caribbean. Managing a massive fleet of over 700 Boeing 737 aircraft, the company serves more than 120 destinations, offering both travel and inflight entertainment services.
For Muslim investors utilizing HalalStocks.co.uk, Southwest Airlines currently holds a Doubtful status based on AAOIFI standards. While the core business of passenger aviation is fully permissible, the stock fails the financial screening due to its debt-to-market capitalization ratio hitting the strict 33% ceiling.
From an Islamic finance perspective, the company's interest-bearing debt of exactly 33.0% is the primary concern, making it a risky holding for strict compliance. However, its other financial metrics are healthy, with interest income accounting for only 0.73% of total revenue and cash and securities making up a modest 17.8% of its market cap.
Since the debt ratio is hovering right on the borderline of the AAOIFI threshold, investors should closely monitor Southwest's quarterly earnings and market valuation. Any reduction in debt or increase in market cap could quickly push the stock back into fully compliant territory.
CEO
Robert E. Jordan
Employees
71,506
IPO Date
1980-01-02
Headquarters
Dallas, TX, US
Website
www.southwest.comLUV Key Financial Statistics
Revenue
$28.06B
Net Income
$441.0M
EPS (Diluted)
$0.79
Stock Price
37.06
Beta
1.18
52-Week Range
26.61-55.11
Total Debt
$5.98B
Total Equity
$7.98B
Current Ratio
0.52
LUV Financial Health & Profitability
Profit Margins
Revenue Growth (YoY)
+2.1%
Prior year: $27.48B
Net Debt
$2.75B
Cash: $3.23B — Debt: $5.98B
Frequently Asked Questions About LUV
Is LUV (Southwest Airlines Co.) stock halal to invest in?▾
What does Southwest Airlines Co. do?▾
What screening criteria were used for LUV?▾
When was LUV last screened?▾
Disclaimer
This shariah compliance assessment for LUV (Southwest Airlines Co.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-04-29.
