Is Southwest Airlines Co. (LUV) halal? Halal. Based on AAOIFI screening, Southwest Airlines Co. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 60/100 (Grade: B).

Southwest Airlines Co.

LUV: Is Southwest Airlines Co. Halal?

Halal

Southwest Airlines Co.

NYSEIndustrialsUS

$46.66

+5.24%

Purify ~1.3% of income

About Southwest Airlines Co.

Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of Puerto Rico, along with 10 international countries close by. These international destinations include Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. To enhance the passenger journey, Southwest provides in-flight entertainment and internet access on its Wi-Fi-enabled planes. The airline also runs the Rapid Rewards loyalty program, enabling members to accumulate points proportional to the money spent on Southwest's base fares. For customer convenience in travel planning, the company offers a range of digital tools, including its official websites and mobile applications, as well as SWABIZ, a dedicated online booking platform for business clients. Additional services available include EarlyBird Check-In, preferred boarding options, and transportation for pets and unaccompanied minors. The company was founded in 1967 and its corporate headquarters are situated in Dallas, Texas.

Sector: Industrials 路 Industry: Airlines, Airports & Air Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 17, 2026
B

Acceptable

Acceptable but room for improvement

60Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap21.3% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 17, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your LUV Dividends

1.3% non-compliant income

LUV has 1.3% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

22.8B

Price

$46.66

Sector

Industrials

Industry

Airlines, Airports & Air Services

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Frequently Asked Questions

Is Southwest Airlines Co. (LUV) halal to invest in?
Based on AAOIFI Standard 21 screening, Southwest Airlines Co. (LUV) is rated Halal with a compliance grade of B (Acceptable). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Southwest Airlines Co. get a B compliance rating?
Southwest Airlines Co. (LUV) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 21.3% (limit 30%); interest-bearing deposits of 19.2% (limit 30%); prohibited income of 1.31% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Southwest Airlines Co.'s Shariah verdict?
Southwest Airlines Co.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Southwest Airlines Co. re-screened for Shariah compliance?
Southwest Airlines Co. (LUV) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 17, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.