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Southwest Airlines Co. (LUV)

- NYSE
  • Yesterday, 8:40 AM
    • Airline fares fell 1.7% M/M in March on a seasonally adjusted basis, according to the Bureau of Labor Statistics.
    • The average fare was down 5% from last year on an adjusted basis.
    • The decrease in fares is due in part to the lag factor of dropping oil prices from the fall and competitive activity in some key markets.
    • Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA, SKYW.
    • BLS CPI data
    | 4 Comments
  • Wed, Apr. 15, 10:20 AM
    • Airlines with a high mix of domestic flights look attractive to Deutsche Bank.
    • The investment firm leans on the logic of avoiding some of the F/X traps of international routes with the U.S. dollar a bullying force.
    • DB lines up Allegiant Travel (ALGT +0.4%), JetBlue (JBLU +1%), Southwest Airlines (LUV +0.5%), and Spirit Airlines (SAVE +0.7%) as top sector picks.
    • An important development in the airline industry occurred earlier today when Delta Air Lines tipped it would cut back international capacity next winter. American Airlines (AAL +2.5%) and United Continental (UAL +1.6%) are on watch to see if they match the more conservative strategy.
    • Previously: Delta Air Lines +1.9% as results impress, capacity control tipped
    | 4 Comments
  • Thu, Apr. 9, 11:55 AM
    • Airlines stocks are making their typical strong move opposite the direction of oil prices.
    • The wild gyrations in the sector appear to be overdone to some analysts and industry watchers as developments in the oil patch crowd out capacity, demand, and pricing trends.
    • Fuel costs only accounted for 30% of the operating expenses for U.S. carriers last year, notes U.S. Global Investors CEO Frank Holmes.
    • He points out that airlines have also become more rational and are increasing the mix of fuel efficient planes.
    • There's also the disparity of airline stocks moving roughly in tandem despite different levels of jet fuel price exposure.
    • Previously: Fueling around with airline stocks (Feb. 07 2015)
    • Airline stocks on the move today: Hawaiian Holdings (NASDAQ:HA) -3.4%, Republic Airways (NASDAQ:RJET) -1.8%, Virgin America (NASDAQ:VA) -1.5%, American Airlines Group (NASDAQ:AAL) -1.5%, JetBlue (NASDAQ:JBLU) -1.5%, Spirit Airlines (NASDAQ:SAVE) -1.4%, Southwest Airlines (NYSE:LUV) -1.3%, Alaska Air Group (NYSE:ALK) -1.2%.
    | 19 Comments
  • Thu, Apr. 9, 9:07 AM
    • Southwest Airlines (NYSE:LUV) reports revenue passenger miles rose 6.7% Y/Y to 9.6B in March.
    • Capacity was up 4.4% to 12.1B available seat miles during the month.
    • The carrier's load factor improved 180 bps to 84.5% for March and was up 80 bps to 80.1% for Q1.
    • Southwest flew less flights this March, but stretched out the average haul by 0.9% to 988 miles. The average trip length was up 1.5% for Q1 to 978 miles.
    • Most of Southwest's airline peers became less efficient during the quarter and month on capacity gains.
    • LUV +1.42% premarket to $43.46.
    | 2 Comments
  • Mon, Apr. 6, 10:10 AM
    • Airline stocks trade lower after crude oil prices make a significant move higher.
    • Recent capacity increases by global carriers has also reset expectations on some airlines.
    • Southwest Airlines (LUV -3%), Virgin America (VA -1.7%), Delta Air Lines (DAL -1.7%), and Spirit Airlines (SAVE -1.3%) have made the biggest downward moves.
    | 11 Comments
  • Tue, Mar. 31, 3:25 PM
    • Airline stocks are on watch this week and next with the new round of monthly traffic and sales reports due out.
    • UBS and Credit Suisse both think passenger revenue per available seat mile fell during Q1.
    • Fares have been strong for the early part of the year, but capacity gains in some key markets is chipping away at efficiency.
    • JetBlue (NASDAQ:JBLU), Alaska Airlines (NYSE:ALK), and Southwest Airlines (NYSE:LUV) have added the most capacity on a percentage basis of the major carriers.
    • American Airlines Group (NASDAQ:AAL) has held capacity level.
    • Previously: U.S. airlines fares rise in February (Mar. 24 2015)
    | 11 Comments
  • 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.
    | 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.
    | 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
    | 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.
    | 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)
    | 17 Comments
  • 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
    | 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.
    | 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.
    | 7 Comments
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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