LUV certainly has the benefit of past performance and will do well. But how much credit do you give them given the changes in the industry behaviors, and its 27 trailing p/e vs. a 5.5 trailing p/e for LCC ... or even comparing forward p/e's?
Kelly is doing an OK job of managing LUV, but it's been abundantly clear for years now that it's best days are over. I'm still not sure that they can make ATL work for them. Without offering lower fares, I suspect most of the "best" customers will prefer DAL, so that hub will be unsuccessful for them. And LUV's overall high costs make them no threat to anybody. Just look at what happened at PHL. LCC just crushed them there; they seem to even be pulling out of most PHL-Florida leisure markets (I'm guessing JetBlue will ultimately replace them there).
There's just no good reason to be a shareholder of LUV here. They are virtually guaranteed to underperform LCC and other airline stocks.