The airline sector was hit hard by the COVID-19 pandemic and the response to it that collapsed air travel and strained balance sheets. But with the partial economic recovery underway and life returning to some sense of normal, airline stocks have seen a comeback on hopes that air travel will pick up and the worst of the revenue drops are behind us.

With arguably the best balance sheet in the airline sector and a track record of overcoming adversity, Southwest Airlines (NYSE:LUV) presents one obvious way to ride the surge in airline stocks. But with a lot of uncertainty still ahead, how much risk is Southwest Airlines still facing and is it worth investing in?

A justified bounce?

Since reporting its first-quarter 2020 earnings results on April 28, Southwest stock is up an astounding 23%. Of course, it's still down roughly 32% from 52-week highs set in mid-February.