Southwest Airline Co. (NYSE:LUV) turned lower in premarket action on Thursday as investors digested the lawsuit filed by the Department of Transportation over violating rules establishing realistic flight schedules and disrupting the travel plans of passengers.

LUV, like most of Wall Street, has yet to get off the ground in 2025. The stock still holds a 14% year-over-year gain, with $32 area acting as support and the 80-day moving average helping to contain further losses.

Co. to "Sell" from "Neutral" on declining earnings quality and weaker cash flow conversion compared to pre-pandemic levels. The brokerage also reduced its price target to $29.50 from $31.50.