Seeking Alpha

Southwest Airlines Co. (LUV)

  • Jan. 8, 2013, 7:55 AM
    Deutsch Bank upgrades Southwest (LUV) to Buy from Hold with an improved price target of $15. The firm thinks the carrier is set to start realizing a return on its invested capital and see the synergies from the AirTran purchase contributing to the bottom line in short order.
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  • Dec. 14, 2012, 9:07 AM
    Heard at the Southwest Airlines (LUV) Investor Day Event: 1) The integration of AirTran should be completed in full by the end of 2014. 2) Execs see careful management of capacity as a major goal and forecast "modest" increases of fares. 3) Fleet initiatives will contribute to results in 2013 with new aircraft deliveries on tap and conversions of existing aircraft adding to efficiencies. 4) Execs note traffic is growing faster than capacity, but take a cautious tone on growing before the trend solidifies. (webcast)
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  • Dec. 13, 2012, 2:34 PM
    The IATA's forecast for 2012 airline industry profits lit a charge under stocks in the sector for the day, but the group also sees clear skies ahead in 2013. Fuel prices should fall lower and passenger demand will increase by 4.5%, according to IATA estimates. Things are even rosier for North American carriers, with profits expected to jump 42% Y/Y to $3.4B. In the big picture, the targeted capacity cuts at airlines may finally stay to pay dividends.
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  • Dec. 13, 2012, 9:51 AM
    Airline stocks trade higher after IATA raises its profit forecast for the sector. The trade group says it expects airlines to hit a profit level of $6.7B this year, up from a prior estimate of $4.1B. The lift is due to "improving efficiency and restructuring," says IATA director-general Tony Tyler.
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  • Dec. 4, 2012, 9:44 AM
    Airline stocks trade higher with oil prices easing off and more M&A talk swirling around following news from yesterday that Virgin Atlantic was up for sale. Another underlying factor to watch in the sector is if European or U.S. regulators relax on foreign ownership rules to put a charge into consolidation plans. Advancers: DAL +2.9%, LUV +1.5%, UAL +1.4%, LCC +1.3%.
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  • Nov. 27, 2012, 3:00 PM
    President Obama signs a bill to effectively shield U.S. airlines from European carbon emission fees. The development is a victory for carriers with the threat of having to pay a fee for flight times over U.S. soil on top of the time spent in EU airspace a part of the controversial emissions trading system.
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  • Nov. 15, 2012, 5:43 PM
    Southwest Airlines (LUV) declares $0.01/share quarterly dividend, in line with previous. Forward yield 0.45%. For shareholders of record Dec. 6. Payable Jan 3. Ex-div Dec. 4. (PR)
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  • Nov. 8, 2012, 2:28 PM
    Airline stocks rally as a number of oil analysts say they see further downward price action ahead with U.S. inventories and production high. The sector is also getting a little boost with New York-region airports recovering quickly from the latest winter storm. Advancers: JBLU +3.5%, DAL +2.6%, UAL +2.4%, LUV +1.9%.
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  • Nov. 7, 2012, 8:08 AM
    Major airline are canceling flights in and out of the New York area ahead of a major winter storm bearing down on the region. Over a thousand flights scheduled for today and tomorrow have already been cancelled. The bigger issue: On the heels of Hurricane Sandy, a second storm will further disrupt the Q4 profitability of major carriers - although some industry loss estimates came in too high. Wolfe Trahan pegs the number at $190M with some sales made back up on rescheduled trips - instead of the +$500M loss projection getting bandied around last week.
  • Nov. 2, 2012, 8:38 AM
    Airlines continue to make progress in returning to a normal flying schedule as major airports in the New York region resume operations. While broad estimates on the cost of Hurricane Sandy on the industry range from $500M to over a billion dollars, the trick for traders will be to compute which carriers took the biggest hits from the ripple effect of cancellations that shook out beyond East Coast airports.
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  • Nov. 1, 2012, 9:32 AM
    Flight cancellations start to head back down after both domestic and international carriers saw an ugly week with major airports closed. The consensus opinion analysts seem to be forming is carriers will see Q4 numbers trimmed due to the storm, but any sustained impact on earnings won't be meaningful.
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  • Oct. 31, 2012, 8:04 AM
    Airline stocks appear set to open lower as the number of canceled flights due to Hurricane Sandy is now +18K and counting (live flight tracker). Naturally, carriers with increased exposure to the East Coast could take the biggest hits to Q4 revenue. Premarket: US Airways (LCC) -3.5%, Delta Air Lines -3.6%, JetBlue (JBLU) -3.1%, Southwest Airlines (LUV) -0.8%.
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  • Oct. 30, 2012, 7:37 AM
    The number of flights canceled due to Hurricane Sandy soars past the 14K mark. Philadelphia International and LaGuardia are the two airports with the most cancellations today, while Washington DC-area airports and Boston Logan International are picking up the pace of flights. Combined losses for domestic carriers has been pegged as high as $450M.
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  • Oct. 29, 2012, 2:36 PM
    The number of flights canceled due to Hurricane Sandy soars past 10K with major airports in Washington DC, Philadelphia, and New York nearly crippled for the time being. CNBC reports the storm could cost the industry over $450M even though it struck at a relatively low period for travel. (Live flight tracker)
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  • Oct. 22, 2012, 12:16 PM
    Southwest Airlines (LUV -1%) says it will take over routes from AirTran Airways in four more cities next April as it continues to merge operations between the two carriers. On last week's earnings conference call (transcript), execs highlighted the delicate balance between moving too slowly or too quickly with the Airtran integration.
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  • Oct. 18, 2012, 1:12 PM
    Highlights from Southwest Airlines' (LUV +0.8%) conference call: Execs say modernizing the carrier's fleet adding close to $700M a year starting in 2015. The company forecasts a favorable cost environment in 2013, boosted by lower oil prices. Revenue management and pricing continues to be tweaked at AirTran, though upside within the brand is limited. Fuel hedges still running off of a 2008 deal, so coverage is down to 15% to reduce risk for 2013. Travelers take note: Southwest is also giving increased power to agents to discount fares for walk-up customers. (webcast)
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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