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Southwest Airlines Co. (LUV)

  • Mon, Jun. 1, 3:56 PM
    • Southwest Airlines (LUV +2.3%) CEO Gary Kelly brought some cheer to the airline sector when he told Bloomberg TV it will increase capacity this year at a 7% rate - instead of the 8% pace tipped off last month.
    • "We’re going to make sure we manage accordingly to the low end of the range. That should address some of the concerns of our investors,” said Kelly.
    • Alaska Air Group (ALK +2.2%), American Airlines Group (AAL +4.3%), Delta Air Lines (DAL +3.4%), and United Continental (UAL +3.2%) all reacted positively to the cautious stance from Southwest.
    | Mon, Jun. 1, 3:56 PM | 23 Comments
  • Sat, May 30, 10:43 AM
    • The airline sector has been rattled this month by an indication from Southwest Airlines of a slight increase in capacity and some RevPAR tallies below expectations.
    • Concerns on pricing and capacity have held back some analysts from setting higher price targets on the group for the next year.
    • Over the last year, most airline stocks have showed a high degree of correlation with oil prices despite all the other factors that impact profits in the sector.
    • Southwest Airlines (NYSE:LUV), United Continental (NYSE:UAL), Alaska Airlines Group (NYSE:ALK), and Allegiant Travel (NASDAQ:ALGT) all had a correlation coefficient of -0.90 or lower between their daily closing share price and the level of oil. A mark of -1.0 indicates perfect negative correlation - while 0.0 indicates no correlation and +1.0 is perfect positive correlation.
    • American Airlines Group (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), JetBlue (NASDAQ:JBLU), Republic Airways (NASDAQ:RJET), and Hawaiian Airlines (NASDAQ:HA) were all at -0.80 or lower.
    • Over a shorter period due to its IPO launch, the correlation coefficient on Virgin America (NASDAQ:VA) vs. oil came in at -0.733.
    • The U.S. carriers marching with the most independence from oil prices were Spirit Airlines (NASDAQ:SAVE) at -0.622 and SkyWest (NASDAQ:SKYW) at -0.701.
    • Pricing data and correlation coefficients
    | Sat, May 30, 10:43 AM | 16 Comments
  • Tue, May 26, 9:57 PM
    • Airline stocks stretched their losing streak to six sessions today, the longest such stretch since last October and the worst cumulative showing (-8.8%) since shedding 10.9%, also in October.
    • Analysts cite pressure from concerns over capacity growth and the resulting lack of pricing power, as well as a May spike in west coast jet fuel prices due to several unscheduled refinery outages; "jet fuel assumptions at airlines may have to be raised due to the high cost of refining jet fuel on the west coast," Cowen's Helane Becker says.
    • Even as he remains somewhat bullish on the stocks, UBS analyst Darryl Genovesi today cut his earnings estimates this year and next for American (NASDAQ:AAL), Delta (NYSE:DAL) and Alaska Air (NYSE:ALK), and lowered his estimate for Southwest (NYSE:LUV) earnings this year and United (NYSE:UAL) in 2016.
    • Among some of the more active airline stocks, DAL has fallen 11%, JetBlue (NASDAQ:JBLU) has shed 8.7%, AAL has plunged 15%, and LUV has sunk 14% over the past six sessions.
    • ETFs: IYT, JETS
    | Tue, May 26, 9:57 PM | 23 Comments
  • Fri, May 22, 9:02 AM
    | Fri, May 22, 9:02 AM | 14 Comments
  • Wed, May 20, 5:52 PM
    • Aggressive positioning by airlines this week has led to some sharp share prices declines.
    • American Airlines indicated it would match lower fares from peers, while Southwest Airlines added capacity on some key routes.
    • Lower oil prices and stronger demand in the business segment has sparked some of the capacity growth.
    • Airline stocks: LUV, AAL, DAL, JBLU, SAVE, ALK, HA, VA, RJET, UAL.
    • Related ETF: JETS.
    | Wed, May 20, 5:52 PM | 30 Comments
  • Wed, May 20, 10:42 AM
    • Airline stocks are making a strong move lower after oil prices react to supply data out of the U.S. and Japan along with renewed tension in Yemen.
    • Some sector analysts have noted the swings in airline share prices (up/down) are outsized compared to the impact on jet fuel prices of daily developments in the crude oil market.
    • Platts has a breakdown of how supply and demand forces in the jet fuel market bring other factors into play.
    • Leading airline decliners: Southwest Airlines (LUV -6.8%), American Airlines Group (AAL -6.1%), JetBlue (JBLU -6.3%), United Continental (UAL -6%), Spirit Airline (SAVE -5.3%), Delta Air Lines (DAL -4.9%), Alaska Air Group (ALK -3.9%), Hawaiian Holdings (HA -4.6%), Republic Airways (RJET -3.5%), Allegiant Travel (ALGT -3.8%).
    • Related ETFs: JETS.
    | Wed, May 20, 10:42 AM | 60 Comments
  • Mon, May 18, 5:24 AM
    | Mon, May 18, 5:24 AM | 20 Comments
  • Wed, May 13, 2:20 PM
    | Wed, May 13, 2:20 PM | Comment!
  • Wed, May 13, 11:35 AM
    • Southwest Airlines (NYSE:LUV) declares $0.075/share quarterly dividend, 25% increase from prior dividend of $0.06.
    • Forward yield 0.71%
    • Payable June 24; for shareholders of record June 3; ex-div June 1.
    | Wed, May 13, 11:35 AM | 5 Comments
  • Wed, May 13, 11:17 AM
    • Southwest Airlines (LUV -0.3%) announces a new $1.5B share buyback plan.
    • The buyback allowance includes $300M set aside as part of an accelerated program.
    | Wed, May 13, 11:17 AM | Comment!
  • Thu, May 7, 9:04 AM
    • Revenue passenger miles outpaced capacity gains by a healthy margin for Southwest Airlines (NYSE:LUV) in April.
    • RPMs were up 8.6% Y/Y, compared to the 6.7% increase in available seat miles.
    • The company's load factor the month improved 160 bps to 83.1%.
    • YTD load factor is +100 bps to 80.9%.
    • LUV +0.1% premarket.
    | Thu, May 7, 9:04 AM | Comment!
  • Wed, May 6, 7:21 AM
    | Wed, May 6, 7:21 AM | 2 Comments
  • Fri, May 1, 12:59 PM
    • Boeing’s (BA +0.7%) smallest version of the 737 jetliner faces an uncertain future as Southwest Airlines (NYSE:LUV), the carrier that championed the plane, focuses on larger models.
    • Southwest is talking with Boeing about switching some or all of its remaining 56 orders for the 737-700 to a version that seats 32 more passengers, COO Mike Van de Ven tells Bloomberg.
    • Airlines and plane makers are watching to see whether LUV also will amend its plans to receive the 737 Max 7, an update to the 700 that is due to enter service late this decade; the airline accounts for almost half of the Max 7 aircraft on order, but has fewer of those than the larger Max 8 model.
    • "If Southwest converts to the Max 8, then it puts a significant dent into the business case for the Max 7,” says a global aerospace exec with consultant Frost & Sullivan.
    | Fri, May 1, 12:59 PM | 3 Comments
  • Sat, Apr. 25, 5:53 PM
    | Sat, Apr. 25, 5:53 PM | 17 Comments
  • Thu, Apr. 23, 8:34 AM
    • Southwest Airlines (NYSE:LUV) posted a record revenue tally for Q1 off of a 6.2% increase in passenger revenue and double-digit gain in freight revenue.
    • Passenger revenue per available seat mile fell 0.7% to $0.1616.
    • Available seat miles (capacity) +6.0% to 32,297B.
    • Load factor +80 bps to 80.1%.
    • Average fare +0.7% to $158.01.
    • Total operating expenses fell 8% to $3.6B even as flights were added.
    • Economic fuel cost savings of $450M were struck during the quarter as the average price per gallon fell to 35.1% to $2.00.
    • LUV +1.28% premarket to $43.44.
    | Thu, Apr. 23, 8:34 AM | 1 Comment
  • Thu, Apr. 23, 8:22 AM
    • Southwest Airlines (NYSE:LUV): Q1 EPS of $0.66 beats by $0.01.
    • Revenue of $4.41B (+5.8% Y/Y) in-line.
    • Shares +1.87% PM.
    • Press Release
    | Thu, Apr. 23, 8:22 AM | 1 Comment
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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