Southwest Airlines Co. (LUV) - NYSE
  • Yesterday, 12:59 PM
    • Southwest Airline (LUV -2%) is lower after JPMorgan downgrades the airline stock to Neutral from Overweight.
    • Analyst Jamie Baker thinks the company needs to reconsider its stance on baggage fees and fare levels.
    • JP on wage pressure: "Our below-consensus outlook assumes $550m of incremental wage pressure in 2017 for all three unions, broadly in line what pilots alone are seeking, suggesting perhaps we are too generous."
    • The price target on LUV is lowered to $34.
    | Yesterday, 12:59 PM | 21 Comments
  • Fri, Jul. 22, 9:07 AM
    • Buckingham Research downgrades Southwest Airlines (NYSE:LUV) to Neutral after having the airline stock set at Buy. The investment firm's price target is dropped to $40 from $49.
    • Credit Suisse lowers its PT on Southwest to $48 from $54.
    • Cowen and Company sticks with an Outperform rating on Southwest, but trims its PT to $47.
    • SA contributor Stone Fox Capital says Southwest was punished too hard for the narrow $0.02 EPS miss yesterday, noting quarterly profit set a record. By Stone Fox's logic, investors have a good buying opportunity.
    • LUV +1.63% premarket to $37.93 to cut into yesterday's post-earnings drop.
    | Fri, Jul. 22, 9:07 AM | 7 Comments
  • Thu, Jul. 21, 10:39 AM
    • Airline stocks (JETS -2.8%) are broadly lower following Southwest Airlines' (LUV -8.8%) Q2 earnings miss and downbeat guidance for a 3%-4% decline in Q3 RASM from a 0.6% gain in Q2.
    • Shares also are hurt by warnings from Deutsche Lufthansa (OTCQX:DLAKF, OTCQX:DLAKY) and EasyJet (OTC:EJTTF, OTCQX:ESYJY) that recent terror attacks and political turmoil in Europe were weighing on their businesses.
    • Lufthansa says advance bookings, particularly on longer routes to Europe, "have declined significantly, in particular due to repeated terrorist attacks in Europe and to greater political and economic uncertainty."
    • Easyjet also warns on terrorism, and says the U.K.’s Brexit vote would hurt per-seat revenue, and that foreign exchange and fuel cost effects would add ~£25M ($33M) to full-year expenses.
    • DAL -3.1%, UAL -2.9%, AAL -2%, RYAAY -2.9%, ALK +0.8%, JBLU -2.3%, SAVE -2.6%, HA -1.3%, SKYW -0.2%.
    | Thu, Jul. 21, 10:39 AM | 19 Comments
  • Thu, Jul. 21, 9:15 AM
    | Thu, Jul. 21, 9:15 AM | 1 Comment
  • Thu, Jul. 21, 8:09 AM
    • Southwest Airlines (NYSE:LUV) -4.9% premarket after Q2 earnings and revenues missed expectations, and the company warns of a challenging fare environment.
    • LUV says Q2 unit revenue, as measured by passenger revenue per available seat mile, fell 3.5% Y/Y after declining for the previous four quarters, reflecting a broad industry decline because of relatively rapid expansions; LUV anticipates unit revenue to fall 3%-4% in the current quarter.
    • LUV also expects Q3 and FY 2016 unit costs to increase 2% and 1%, respectively, from year-ago levels, mostly due to additional depreciation expense associated with the accelerated retirement of its classic fleet.
    • Q2's average cost of fuel fell to $1.81/gallon from $2.02 in the year-ago quarter, and LUV estimates fuel costs of $2.05/gallon in the current quarter.
    • Q2 load factor rose to 85.6% from 84.6% a year ago, traffic jumped 6%, and available seat miles increased 4.8%.
    | Thu, Jul. 21, 8:09 AM | 12 Comments
  • Tue, Jul. 12, 9:58 AM
    • Airline stocks are making strong gains on a flurry of positive news.
    • The investment in LATAM Airlines (LFL +23.9%) by Qatar Airways is having a ripple effect across other global carriers. Copa Holdings (CPA +7.9%), Avianca Holdings (AVH +8.1%), and Go Linhas (GOL +7.8%) are all solidly higher.
    • In the U.S., a stronger-than-anticipated report from United Continental (UAL +7.7%) on its key Q2 revenue metric is the highlight along with a sweeping upgrade from Deutsche Bank.
    • The investment firm raises United, American Airlines Group (AAL +8.6%), and Delta Air Lines (DAL +4.7%) to Buy from Hold.
    • "We are of the view that all known negatives (Brexit, tepid global economic growth, over-supplied markets, etc.) are more than fully discounted in the share prices which are, on average, trading at 6.4x our 2016 EPS estimates and 6.8x our 2017 EPS estimates," reads the note from DB.
    • Alaska Air Group (ALK +4.3%), JetBlue Airways (JBLU +4%), Southwest Airlines (LUV +3.4%), and Spirit Airlines (SAVE +3.3%) are all higher as well.
    • The U.S. Global Jets ETF (NYSEARCA:JETS) is up 3.86% on the day.
    | Tue, Jul. 12, 9:58 AM | 5 Comments
  • Wed, Jul. 6, 1:02 PM
    • Airline stocks continue to lose altitude amid concerns on capacity growth and labor expenses. The Bloomberg U.S. Airlines Index has retreated 27% YTD, while the slightly-diversified U.S. Global Jets ETF (NYSEARCA:JETS) is down about 17%.
    • Analysts such as Credit Suisse's Julie Yates continue to point the finger directly at management.
    • "Capacity growth continues to outpace GDP in all regions and the industry’s willingness to trim growth with oil still in a historically inexpensive range of $50 a barrel is low," notes Yates. Delta's disclosure of a 5% drop in PRASM in Q2 backs up her contention.
    • Sector snapshot: A CS downgrade on both United Continental (UAL -3.2%) and American Airlines Group (AAL -4.1%) today sent both stocks spiraling downward, with UAL hitting a 52-week low. Also suffering from the doldroms, Delta Air Lines (DAL -1.7%) is down 29% YTD and JetBlue (JBLU -1.2%) is off 27%. Spirit Airlines (SAVE -2%) and Southwest Airlines (LUV -1.1%) don't have to worry about European demand, but have seen an impact from pricing competition in key markets this year. Virgin America (VA -0.2%) shareholders are the ones that have navigated the choppy market the best this year due to the buyout from Alaska Air Group (ALK -1.3%).
    | Wed, Jul. 6, 1:02 PM | 42 Comments
  • Tue, Jul. 5, 10:35 AM
    • Airline stocks are notable laggards on the day after Delta Air Lines (DAL -4.4%) reduced its outlook for Q2 operating margin to 17% (from 21% to 23% prior) and reported on a 5% drop in PRASM during June.
    • United Continental (UAL -3.5%) and American Airlines Group (AAL -2.5%) are seen as suffering from some of the same F/X and Brexit pressures abroad, while Spirit Airlines (SAVE -4%) and Allegiant Travel (ALGT -2.2%) continue their jittery trading patterns.
    • Southwest Airlines (LUV -1.4%) is also lower, despite a positive weekend profile in Barron's highlighting the stronger balance sheet the airline company has compared to peers and the lack of European headaches.
    • Previously: Delta Air Lines lower after issuing June traffic numbers (July 5)
    • Related ETF: JETS.
    | Tue, Jul. 5, 10:35 AM | 5 Comments
  • Mon, Jun. 27, 12:39 PM
    • Hawaiian Holdings (HA +4.6%) is a rare gainer among transportation stocks today as Deutsche Bank upgrades shares to Buy from Hold with a $41 price target, saying the vote to leave the E.U. creates uncertainty in near-term demand for air travel to and from the U.K. as well as how the U.K. will feature in a revised E.U.-U.S. Open Skies accord.
    • The firm notes that with the IATA warning about a "permanent downward shift" in U.K. passenger volumes of 3%-5% by 2020 following the Brexit vote, U.S. airlines with exposure to the U.K. suffered 8%-11% share declines on Friday.
    • Among the Big Three U.S. airlines, Deutsche Bank sees potential downside EPS risk and thus maintains Hold ratings on American (AAL -4.8%), United (UAL -7.2%) and Delta (DAL -4.5%), given that the U.K. market for 2016 represents 6.3% of AAL’s capacity, 5.4% of UAL’s and 2.8% of DAL’s.
    • The firm favors domestic names such as Southwest (LUV -3.3%), Spirit (SAVE -2.8%) and JetBlue (JBLU -1.7%), "which should gain from a favorable leisure/discretionary travel outlook."
    | Mon, Jun. 27, 12:39 PM | 9 Comments
  • Fri, Jun. 24, 5:54 PM
    • After Southwest Airlines' (LUV -3.2%) investor day, Cowen and Co. took the opportunity to trim the airline's price target, and Deutsche Bank is still a believer in the face of ongoing revenue challenges.
    • Cowen maintains an Outperform rating on Southwest but cut its price target to $49 from $51, implying 27.9% upside from today's close.
    • Meanwhile, Michael Linenberg at Deutsche is sticking with a Buy rating and has a $57 target (49% upside). The airline could get a $200M boost to EBIT from technology and operational improvements in a new domestic reservation system set to begin rolling out later this year, he says.
    • That's set to wrap up in the second half of 2017 which could lead to $500M in incremental EBIT by 2020.
    • He's more forgiving than the market about revenue challenges as well; the airline said June quarter unit revenue would grow at less than 1% vs. DB's forecast of about 0.5%.
    | Fri, Jun. 24, 5:54 PM | 4 Comments
  • Thu, Jun. 23, 1:04 PM
    • CEO Gary Kelly sees Q2 unit growth of less than 1% from year-ago levels; previously the company had guided for a larger increase. Second half growth will be difficult following the ending of a credit card deal.
    • The company also says it defer $1.9B of capex spending by postponing delivery of 67 Boeing 737 Max 8 airplanes by as many as six years.
    • Webcast
    • LUV -0.9%
    | Thu, Jun. 23, 1:04 PM | 10 Comments
  • Tue, Jun. 14, 3:26 PM
    • A number of airline stocks are at or very close to 52-week lows as a combination of factors continue to drive selling pressure.
    • The Orlando terror attack and anxiety over the impact of Britain leaving the European Union on business travel top the list.
    • American Airlines (AAL -4.9%), JetBlue (JBLU -3.2%),  and United Continental (UAL -4.8%) slumped to one-year lows.
    • Spirit Airlines (SAVE -3.8%), Alaska Air Group (ALK -4.5%), Delta Air Lines DAL, Hawaiian Holdings (HA -3.3%), and  Southwest Airlines (LUV -5.3%) are also down sharply.
    • The U.S. Global Jets ETF (NYSEARCA:JETS) has nowhere to hide and is down 3.17%.
    | Tue, Jun. 14, 3:26 PM | 71 Comments
  • Mon, Jun. 13, 9:57 AM
    • Airline stocks begin the week with a sharp downward movement.
    • The terror attack in Orlando is the main driver of the selling pressure on the sector, although a bombing in the Shanghai airport yesterday is also impacting Chinese airlines China Eastern Air (CEA -2.1%) and China Southern Airlines (ZNH -5.3%).
    • Decliners include Hawaiian Holdings (HA -3.1%), American Airlines Group (AAL -2.9%), Spirit Airlines (SAVE -3.8%), Delta Air Lines (DAL -2.7%), JetBlue (JBLU -2.1%), Southwest Airlines (LUV -2.5%), SkyWest (SKYW -1.8%), United Continental (UAL -2.6%), Alaska Air Group (ALK -2.3%), and Allegiant Travel (ALGT -1.5%).
    • The U.S. Global Jets ETF (NYSEARCA:JETS) is down 2.72% on the day.
    | Mon, Jun. 13, 9:57 AM | 13 Comments
  • Tue, Apr. 26, 11:07 AM
    • Airline stocks are slumping as they take their cues from the tone on capacity coming from JetBlue (NASDAQ:JBLU).
    • JetBlue guided for a Q2 drop of 7% for the closely-watched revenue per available seat mile metric. Capacity is seen rising 9.5% to 11.% during the quarter. During the earnings call, execs tipped off some mild back-half capacity constraint with the full-year forecast for capacity growth standing at 8.5% to 10.5%.
    • Shares of JetBlue are down 3.4%, while Southwest Airlines (LUV -1.6%), United Continental (UAL -1.4%), and American Airlines Group (AAL -1.1%) are all falling off sharper than the broad market.
    • JetBlue earnings call webcast
    | Tue, Apr. 26, 11:07 AM | 23 Comments
  • Mon, Mar. 28, 12:58 PM
    • Virgin America (VA +3.6%) trades at its highest level of the year as the guessing game continues over which airline company may try to buy out the budget carrier.
    • Cowen says JetBlue (NASDAQ:JBLU) is the most likely acquirer of Virgin America, although Alaska Air Group (NYSE:ALK), Delta Air Lines (NYSE:DAL), and Hawaiian Holdings (NASDAQ:HA) could all be in the mix.
    • Last week, Frank Holmes, CEO of the U.S. Global Jets ETF (NYSEARCA:JETS), noted that Southwest Airlines (NYSE:LUV) is a natural fit in terms of culture and global opportunities. Many airline insiders think bidding action could take Virgin America's share price into the $40s.
    • Previously: Virgin America jumps 12% on report of takeover interest (March 23)
    | Mon, Mar. 28, 12:58 PM | 8 Comments
  • Tue, Mar. 8, 2:39 PM
    • Airline stocks are down almost across the board after several U.S. carriers reported on February traffic and doled out forecasts on passenger revenue per available seat mile. The closely-watched PRASM metric has been pressured by a broad boost in capacity and heightened competition in regions where ULCC (ultra low cost carriers) scrap for market share.
    • Notable decliners today include JetBlue (JBLU -7.7%), Spirit Airlines (SAVE -4.8%), Delta Air Lines (DAL -3.9%), SkyWest (SKYW -3.6%), and Virgin America (VA -3%). Southwest Airlines (LUV +0.5%) is the outlier in the sector after avoiding a forecast for negative Q1 PRASM. The U.S. Global Jets ETF (NYSEARCA:JETS) is down 2.8% on the day.
    • Earlier traffic reports: American Airlines, Southwest, JetBlue, SkyWest.
    | Tue, Mar. 8, 2:39 PM | 14 Comments
Company Description
Southwest Airlines Co. provides scheduled air transportation services in the United States and near international markets. The company operates Southwest Airlines and AirTran Airways major passenger airlines that provide scheduled air transportation services. AirTran Airways operates fleet of... More
Sector: Services
Industry: Regional Airlines
Country: United States