Southwest is the blue-chip of airlines, combining both a robust balance sheet and a great low-cost business model. The company has two predominant strengths over its rivals. First, it has one of the best credit ratings of the major American carriers. To that end, it was carrying about $12.5 billion in cash and cash equivalents at the end of 2021. Southwest didn't have to dilute its equity dramatically or issue tons of debt during the crisis either. It's easy to think frailer rivals such as American Airlines Group Inc. (AAL) are "cheap" because their stock prices haven't recovered from pandemic-induced losses yet. But when you look at the complete picture, Southwest is actually one of the strongest valuation plays in the airline sector as its overall enterprise value has actually rebounded less quickly than its more-indebted rivals. Southwest's catering to tourists and leisure travelers should also help it return to strong profitability; business travel has been slower to rebound.