Is Southwest Airlines Co. LUV stock halal to invest in?

Yes, as of August 2026, Southwest Airlines Co. stock (LUV) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Southwest Airlines Co. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.19%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Southwest Airlines Co. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Southwest Airlines Co. LUV reviewed for Shariah compliance?

Tabadulat reviews Southwest Airlines Co. LUV for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Southwest Airlines Co. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Southwest Airlines Co. LUV pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Southwest Airlines Co. stock (LUV) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Southwest Airlines Co.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Southwest Airlines Co. LUV pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Southwest Airlines Co. stock (LUV) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Southwest Airlines Co.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Southwest Airlines Co. LUV pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Southwest Airlines Co. stock (LUV) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Southwest Airlines Co.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Southwest Airlines Co. LUV stock?

As of August 2026, the dividend purification factor for Southwest Airlines Co. (LUV) is 99.19%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Southwest Airlines Co. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Southwest Airlines Co. LUV pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Southwest Airlines Co. stock (LUV) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Southwest Airlines Co. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Southwest Airlines Co.

NYSE

Shariah-Compliant

Not Shariah

LUV

About

Southwest Airlines Co.

LUV

Southwest Airlines Co. is a major U.S. airline specializing in passenger air travel, operating primarily within the airline industry. Recognized for its point-to-point route structure and low-cost operating model, Southwest Airlines has built its reputation on offering frequent, reliable service with a focus on customer experience. The company maintains a vast network of domestic flights, serving a wide range of cities and regions, and is known for features such as no assigned seating and free checked bags on specific fares. In the broader financial market, Southwest Airlines Co. holds a substantial presence, with recent figures indicating a market capitalization in the range of €14-18 billion and annual revenues exceeding €25 billion. As a publicly listed corporation, it draws significant institutional and individual investor interest, reflected in its large free float and robust trading volumes. The airline plays a pivotal role in the transportation sector, influencing trends in air travel demand, pricing, and service standards, and serves as a barometer for economic activity and consumer confidence in the travel and tourism industries.

Sector:

Industrials

Industry:

Airlines

Employees:

72223

Website:

https://www.southwest.com

LUV

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Southwest Airlines Co.

About

Southwest Airlines Co.

LUV

Frequently asked questions

Is Southwest Airlines Co. LUV stock halal to invest in?

How often is Southwest Airlines Co. LUV reviewed for Shariah compliance?

Does Southwest Airlines Co. LUV pass the AAOIFI Non Permissible Income criteria?

Does Southwest Airlines Co. LUV pass the AAOIFI Interest Bearing Investments criteria?

Does Southwest Airlines Co. LUV pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Southwest Airlines Co. LUV stock?

Does Southwest Airlines Co. LUV pass the AAOIFI Preference Share screen?

How do I buy Southwest Airlines (LUV) stock?

Open your account.

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