Southwest Airlines Co.NYSE
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  • Mon, Nov. 28, 2:36 PM
    • An American Airlines Group (AAL -1%) jet made the first Miami-to-Havana commercial flight in more than fifty years earlier today.
    • A JetBlue (JBLU -2.6%) flight from NYC's Kennedy airport also made its way to Havana today.
    • Flight into Havana from United Continental (UAL -1.3%), Delta Air Lines (DAL -1.3%), Frontier Airlines, Spirit Airlines (SAVE -1.5%) are also scheduled for this week.
    • Southwest Airlines (LUV +0.1%) and Alaska Air Group (ALK -0.5%) are adding service later on. 
    • The airlines are sticking with their plans to fly into Cuba, despite some uncertainty over President-elect Trump's position on U.S.-Cuba relations.
    | Mon, Nov. 28, 2:36 PM | 6 Comments
  • Fri, Nov. 18, 9:21 AM
    • Citi is piggybacking off of Warren Buffett to turn bullish on several airline stocks.
    • Allegiant Travel (NASDAQ:ALGT), Southwest Airlines (NYSE:LUV), Delta Air Lines (NYSE:DAL) and American Air Group (NASDAQ:AAL) are all fresh Buys at the investment firm on the broad theme that sector consolidation and an improved economy will reap benefits.
    • The big Citi endorsement may be even to give the U.S. Global Jets ETF (NYSEARCA:JETS) a push higher today. The catch-all airline ETF has outperformed the S&P 500 Index YTD, +7.9% vs. +7.4%.
    • Previously: Buffett buys airlines (Nov. 14)
    • Previously: Airline sector on watch after big boost of confidence from Omaha (Nov. 15)
    | Fri, Nov. 18, 9:21 AM | 5 Comments
  • Thu, Nov. 17, 3:16 PM
    • Southwest Airlines (NYSE:LUV) declares $0.10/share quarterly dividend, in line with previous.
    • Forward yield 0.86%
    • Payable Jan. 5; for shareholders of record Dec. 8; ex-div Dec. 6.
    | Thu, Nov. 17, 3:16 PM | 1 Comment
  • Thu, Nov. 17, 10:57 AM
    • U.S. air fares fell back 2.2% M/M in October, according to data compiled by the Bureau of Transportation Services.
    • The fall is the third time in the last four months that fares have dropped. On an unadjusted year-over-year comparison, fares were down 5.2% during the month.
    • The lower level of fares will factor into the hyper-watched revenue per available seat mile metric.
    • BTS data
    • Related ETF: JETS.
    • Related stocks: ALGT, JBLU, SAVE, VA, LUV, DAL, AAL, UAL, HA, SKYW, ALK.
    | Thu, Nov. 17, 10:57 AM | 3 Comments
  • Tue, Nov. 15, 1:42 PM
    • Consolidation in the airline sector looks like it's going to be great for investors, but downright lousy for travelers.
    • Today, United Continental (UAL +3.3%disclosed that it plans to restrict low-fare customers to a single carry-on bag and not assign their seats until the day of the departure.
    • Delta Air Lines (DAL -0.1%) announced previously similar restrictions on low fare tickets.
    • The carriers hope to upsell customers on the ability to carry on bags and select seats in advance.
    • The move by the two majors is likely to be copied across the sector or free up rivals to institute their own fee hikes. It will be interesting to see how Southwest Airline (LUV +1.7%) reacts - more fees or a marketing blitz?
    • Shares of UAL are up 13% since the election, while Delta is 11% higher.
    • Related ETF: JETS.
    | Tue, Nov. 15, 1:42 PM | 13 Comments
  • Tue, Nov. 15, 7:57 AM
    • Analyst are still buzzing over Warren Buffett's move to invest in four major airline stocks at once.
    • "What Buffett is basically saying is that the US industry has reached a position of relative stability and will behave," notes Hamlin Transportation Consulting analysts George Hamlin.
    • Other industry watchers think that the boost of confidence from Omaha could bring in a new wave of buyers to the sector which trades at low valuations.
    • Buffett picks in premarket trading: UAL +3.26% AAL +5.65% DAL +3.86% LUV +2.80%.
    • Other airline stocks: JBLU +1.77%, Hawaiian Holdings (NASDAQ:HA) +1.00%, while Alaska Air Group (NYSE:ALK), Spirit Airlines (NASDAQ:SAVE) and Allegiant Travel (NASDAQ:ALGT) haven't started trading yet.
    • Related ETF: JETS.
    • Previously: Buffett buys airlines (Nov. 14)
    | Tue, Nov. 15, 7:57 AM | 3 Comments
  • Mon, Nov. 14, 4:48 PM
    • After famously shunning the airline industry for ever, Warren Buffett has jumped in, with Berkshire Hathaway (BRK.A, BRK.B) showing stakes in American Airlines (NASDAQ:AAL), United Continental (NYSE:UAL), and Delta Airlines (NYSE:DAL) as of Sept. 30.
    • It's not on the 13F filing, but CNBC reports Berkshire as also having taken a stake in Southwest Airlines (NYSE:LUV).
    • Buffett's last play in airlines was a $358M preferred stake in U.S. Airways in the late 1980s. He eventually profited, but not before having to ride major losses which soured him on the industry.
    • AAL +3.4%, UAL +1.7%, DAL +2.3%, LUV +3.1% after hours
    • Buffett on the airlines circa 2002: “If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright ... The airline business has been extraordinary. It has eaten up capital over the past century like almost no other business."
    | Mon, Nov. 14, 4:48 PM | 141 Comments
  • Fri, Nov. 11, 7:01 PM
    • Flights at several airlines were grounded today as a computer outage at airline-tech firm Sabre created a glitch in operations.
    • Sabre says the systems were running again by early this afternoon, but didn't identify a cause for the problem.
    • American Airlines (NASDAQ:AAL) said flights were delayed but not canceled, while Southwest (NYSE:LUV) said the outage briefly prevent bookings, ticket changes and use of mobile boarding passes. Alaska (NYSE:ALK) said 15 flights were delayed by up to 15 minutes.
    • The glitch also hit Virgin America (NASDAQ:VA) and JetBlue (NASDAQ:JBLU), but United (NYSE:UAL) said flights were unaffected, and Delta (NYSE:DAL) doesn't use Sabre.
    • Airline stocks generally followed the market's closing lift to gains today, though: AAL +1.5%; LUV +0.5%; ALK +0.4%; VA flat; JBLU +0.3%; UAL +0.5%; DAL +0.9%.
    | Fri, Nov. 11, 7:01 PM | 12 Comments
  • Mon, Nov. 7, 3:02 PM
    • The union representing pilots at Southwest Airlines (LUV +2.2%) says a new labor deal with the company was approved by 84% of voting members.
    • Pilots are in line for a 15% hike in wages after ratification and 3% annual raises up until 2020.
    • Southwest expects the labor deal will increase unit costs by 3.5% in Q4.
    | Mon, Nov. 7, 3:02 PM
  • Mon, Nov. 7, 12:36 PM
    • Wolfe Research analyst Hunter Keay isn't worried that higher oil prices in the future will be a negative for airline companies.
    • He thinks the impact of capacity discipline is more important than the bottom line of a lower fuel spend. Keay's analysis is below.
    • "Multiples drive about 70 percent of the movement in stock prices. And multiples are dictated by the perception of pricing power, and pricing power is dictated by capacity control. Excess capacity drives pricing down... It’s not about profits, it’s about how they make the profits, about pricing power. Capacity discipline and fundamental behaviors are far more important than the amount of money they earn."
    • Oil prices are up 0.7% on the day, but have dropped sharply over the last month.
    • Airline ETF: JETS.
    | Mon, Nov. 7, 12:36 PM | 17 Comments
  • Mon, Nov. 7, 6:57 AM
    • Southwest Airlines (NYSE:LUV) reports revenue passenger miles increased 5.2% in October to 10.477B.
    • Capacity was up 5.4% Y/Y to 12.227B available seat miles.
    • The carrier's average length of haul increased 0.1% to 976 miles.
    • October load factor -20 bps to 85.7%.
    • YTD load factor +40 bps to 84.1%.
    • Southwest expects Q4 revenue per available seat miles to fall between 4% and 5%.
    | Mon, Nov. 7, 6:57 AM
  • Mon, Oct. 31, 3:57 PM
    • The union representing flight attendants at Southwest Airlines (LUV +2.2%) voted to ratify the labor deal worked out in September.
    • The new contract includes a ratification bonus and annual wage rate increases over the life of the contract.
    • The union says 53.9% of members who cast ballots voted in favor of the contract agreement.
    • The new contract becomes amendable on November 1, 2018.
    • Source: Press Release
    | Mon, Oct. 31, 3:57 PM
  • Sat, Oct. 29, 11:31 AM
    • Southwest Airlines (NYSE:LUV) says it won't cave into investor pressure to charge passengers fees for bags.
    • "We have a unique and beloved position in the industry with this approach and we would be foolish to squander it, so no thought whatsoever on charging bags," noted CEO Gary Kelly on the post-earnings conference call.
    • The catch for Southwest is that it's having some troubling recouping lost baggage fees through higher fares amid some regional pricing wars.
    • "The fare environment is very competitive and we have seen an increase in competitor seats in our markets that is fairly significant year-over-year, and so that obviously has an impact on us," lamented Kelly.
    • It hasn't gone unnoticed that shares of Southwest trail the return of the Global Jets ETF this year (-9.0% vs. -4.5%), but Kelly and team think a new reservations system will provide upside.
    • Southwest Airlines earnings call transcript
    • Previously: Southwest Airlines -8% after forecast disappoints (Oct. 26)
    | Sat, Oct. 29, 11:31 AM | 3 Comments
  • Fri, Oct. 28, 10:13 AM
    | Fri, Oct. 28, 10:13 AM | 1 Comment
  • Wed, Oct. 26, 2:42 PM
    • Investors are backing away from Southwest Airlines (NYSE:LUV) after Q3 earnings disappointed, due in part to a 5% drop in fares.
    • JPMorgan analyst Jamie Baker says the forecast from the carrier "suggests management is increasingly content with lower forecast returns given gently rising fuel and sharply rising labor costs."
    • Looking ahead, CEO Gary Kelly advised that the company will look to grow capacity at a 4% rate next year.
    • Shares of LUV are down 7.62% to fall back below $39.
    • Previously: Southwest Airlines beats by $0.05, misses on revenue (Oct. 26)
    • Previously: Technology outage and lower fares hit Southwest Airlines (Oct. 26)
    | Wed, Oct. 26, 2:42 PM | 11 Comments
  • Wed, Oct. 26, 9:12 AM
    | Wed, Oct. 26, 9:12 AM | 3 Comments