Seeking Alpha

Southwest Airlines Co. (LUV)

  • Fri, Mar. 27, 3:10 AM
    | Fri, Mar. 27, 3:10 AM | 14 Comments
  • Thu, Mar. 26, 8:20 AM
    • Airline stocks are reacting to the jump in crude oil prices as would be expected.
    • Crude oil is markedly higher off of unrest in Yemen.
    • Delta Air Lines (NYSE:DAL) is down 4.1% in premarket action, while United Continental (NYSE:UAL) is off 2.9%.
    • Southwest Airlines (NYSE:LUV) and JetBlue (NASDAQ:JBLU) are both down about 3%.
    • No-hedging American Airlines Group (NASDAQ:AAL) continues to be a curiosity to some traders with its tendency to move in-line with peers on oil swings - despite having a different fuel pricing strategy. AAL -3.4% premarket.
    • A deeper dive into jet fuel prices is available at Platts.
    | Thu, Mar. 26, 8:20 AM | 18 Comments
  • Tue, Mar. 24, 7:15 PM
    • Oil prices have dropped by more than 50% in the past year but consumers have not enjoyed a corresponding drop even though oil prices are an airline's largest expense.
    • NYT's Andrew Ross Sorkin says the airline industry is increasingly looking like an uncompetitive oligopoly, as mergers during the last several years have left the U.S. with only four main airlines - Delta (NYSE:DAL), United (NYSE:UAL), Southwest (NYSE:LUV) and American-US Airways (NASDAQ:AAL) - which deliberately do not compete on some routes.
    • "In a truly competitive marketplace, airlines would add capacity to popular routes where they saw the opportunity to undercut a competitor. And given low oil prices, you would imagine that at least one airline would lower its rates to pick up market share and make it up in volume," Sorkin writes.
    • The International Air Transport Association says the U.S. air travel industry is set to rack up "net post-tax profits" of $13.2B in 2015, up from $11.9B in 2014, a forecast that was based on an average cost of $85/bbl for Brent crude oil - whose price today is ~$55/bbl.
    | Tue, Mar. 24, 7:15 PM | 42 Comments
  • Tue, Mar. 24, 9:48 AM
    • Airline fares in the U.S. rose in February, according to the Bureau of Labor Statistics.
    • The average fare was up 1.9% from January.
    • Fares were 3% lower than they were a year ago during February.
    • Though a slight increase was expected with oil prices higher, the reading is still positive for the sector as the impact of capacity gains in key markets on fares is weighed.
    • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
    • BLS CPI data
    | Tue, Mar. 24, 9:48 AM | 7 Comments
  • Sat, Mar. 21, 11:46 AM
    • Positive commentary from the analyst community and some help from the oil patch helped the airline sector outperform for the week.
    • American Airlines Group (NASDAQ:AAL) ran up a gain of 11% off of news the company would be added to the S&P 500 Index.
    • Plenty of bets were laid out on American with volume on Friday at 137.8M shares vs. 15.33M daily average.
    • Analysts thinks the inclusion of American to the S&P 500 to join Southwest Airlines (NYSE:LUV) and Delta Air Lines (NYSE:DAL) effectively boxes out United Continental (NYSE:UAL) and Alaska Airlines (NYSE:ALK) from the prized index until at least 2016.
    • A positive read from Southwest on efficiency also helped to buoy sentiment.
    • Even beaten-down Hawaiian Holdings (NASDAQ:HA) perked up during the week with a 8.56% run. The carrier has under-performed recently due in part to some hedging losses.
    • ETF fans are set to have their catch-all airline investment opportunity soon with the expected launch of the U.S. Global Jets ETF (Pending:JETS) next month.
    | Sat, Mar. 21, 11:46 AM | 7 Comments
  • Thu, Mar. 19, 2:37 PM
    • Investor may get a buying opportunity with airline stocks when major carriers start reporting in a few weeks, tips Credit Suisse.
    • Shares in the group could trade lower after Q1 numbers come up short amid F/X pressure and Q2 guides for efficiency (PRASM) are influenced by capacity growth.
    • CS is a buyer on weakness with the sector looking strong for the back half of the year.
    • On watch: Southwest Airlines (NYSE:LUV), JetBlue (NASDAQ:JBLU), Delta Air Lines (NYSE:DAL), United Continental (NYSE:UAL), American Airlines Group (NASDAQ:AAL).
    • Previously: Global airline ETF expected this spring (March 18)
    | Thu, Mar. 19, 2:37 PM | 17 Comments
  • Wed, Mar. 18, 7:27 PM
    | Wed, Mar. 18, 7:27 PM | 21 Comments
  • Wed, Mar. 11, 2:12 PM
    • Airline stocks are taking back some ground with oil prices peeling off 1.3%.
    • The sector also got a lift when Southwest Airlines topped analyst estimates for revenue passenger miles for February.
    • Gainers: United Continental (NYSE:UAL+2.4%, Southwest Airlines (NYSE:LUV+1.9%, Virgin America (NASDAQ:VA+1.6%, Spirit Airlines (NASDAQ:SAVE+1.5%, American Airlines Group (NASDAQ:AAL+1.5%, Delta Air Lines (NYSE:DAL+1.2%.
    • Related: Spring preview on U.S. airlines
    • Previously: Load factor on the rise at Southwest Airlines
    | Wed, Mar. 11, 2:12 PM | 6 Comments
  • Wed, Mar. 11, 9:35 AM
    • Southwest Airlines (LUV +1.1%) reports revenue passenger miles rose 6% to 7.1B in February.
    • The gain came off of a 3.6% increase in capacity.
    • Load factor +180 bps to 79.9% for February and +20 bps to 77.4% YTD.
    | Wed, Mar. 11, 9:35 AM | 3 Comments
  • Wed, Mar. 11, 7:41 AM
    • U.S. airlines expect passenger traffic to increase 2% during March and April.
    • The group of major carriers is forecast to show a 3% rise in capacity over the period.
    • The industry's net profit margin is expected to improve compared to a year ago due to lower fuel expenses.
    • The average price on aviation jet fuel in North America is currently down 36.6% from a year ago, but 25.2% higher than the level from a month ago.
    • Airline fares fell 3% in January and are expected to have shown a smaller decline in February. March fares are seen as holding steady due to strong business demand.
    • U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
    | Wed, Mar. 11, 7:41 AM | 7 Comments
  • Thu, Mar. 5, 7:39 PM
    • A major winter storm which is sweeping across a wide part of the eastern and southern part of the U.S. impacted air travel.
    • The number of flight cancellations today totaled over 5,300 with SkyWest (NASDAQ:SKYW), Southwest Airlines (NYSE:LUV), Delta Air Lines (NYSE:DAL), American Airlines Group (NASDAQ:AAL) and Republic Airlines (NASDAQ:RJET) all hit hard.
    • Weather has also played a factor in the retail sector. Several mall-based chains blamed Mother Nature for the year-over-year drop in traffic during February.
    • Previously: U.S. retailers warn on cold snap impact
    | Thu, Mar. 5, 7:39 PM | 2 Comments
  • Wed, Mar. 4, 9:11 AM
    • IATA reports global airliners showed passenger growth of 4.6% in January.
    • International flights were up 5.4% on a revenue passenger kilometer basis, while domestic routes increased 3.2%.
    • Jan. passenger demand by carrier region: Europe +5.0%, Asia-Pacific +4.7%, North America +2.7%, Middle East +11.4%, Latin America +5.6%, Africa -0.7%.
    • The timing of the Chinese New Year (February this year) was a factor, notes IATA. Overseas trips by domestic passengers rose an estimated 10% Y/Y during the Chinese New Year holiday.
    | Wed, Mar. 4, 9:11 AM | Comment!
  • Thu, Feb. 26, 9:15 AM
    • Airline fares fell 3.0% Y/Y in the U.S. during January on an unadjusted basis, according to data from the Bureau of Labor Statistics.
    • The average fare was down 1.4% M/M.
    • The drop in fares over the last few months lags by a wide margin the fuel expense savings reported by carriers.
    • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW,
    | Thu, Feb. 26, 9:15 AM | 9 Comments
  • Wed, Feb. 25, 1:23 PM
    | Wed, Feb. 25, 1:23 PM | Comment!
  • Wed, Feb. 25, 8:29 AM
    | Wed, Feb. 25, 8:29 AM | Comment!
  • Wed, Feb. 25, 2:05 AM
    • Southwest Airlines (NYSE:LUV) took 128 of its jets out of service late Tuesday, or roughly one-fifth of its fleet, after informing federal regulators that it "inadvertently omitted" required maintenance checks on the planes' backup hydraulic systems.
    • Dozens of flights were immediately canceled as a result, while officials from Southwest and the FAA discussed plans to complete the maintenance checks and return the planes to service.
    • LUV -0.1% AH
    | Wed, Feb. 25, 2:05 AM | 5 Comments
Company Description
Southwest Airlines Co is an operator of passenger airline that provides scheduled air transportation in the United States and international markets.
Sector: Services
Country: United States