Why Southwest Airlines Stock Is Flying Lower Today
Southwest Airlines (NYSE: LUV) is cutting back in response to Boeing's issues delivering airplanes, and investors are heading for the exits. Shares of Southwest were down 10% as of 10:30 a.m. ET following the company's disappointing earnings release.
Southwest is famously an all-Boeing fleet, relying exclusively on the aerospace giant's workhorse 737 line. Unfortunately, the 737 has had a lot of issues of late. The MAX generation planes were grounded for 18 months in 2019-2020 after a pair of fatal crashes and recent quality issues forced the company to slow production and push back new model certifications.
Fewer planes mean slower growth for Southwest. On Tuesday, the company announced it lost $0.36 per share in the quarter on revenue of $6.33 billion. The first quarter is historically a weak one, but the results were worse than the $0.34-per-share loss on sales of $6.42 billion that Wall Street had expected.
Source Fool.com
Southwest Airlines Co. Stock
With 7 Buy predictions and 8 Sell predictions the community is currently undecided on Southwest Airlines Co..
With a target price of 27 € there is a slightly negative potential of -16.02% for Southwest Airlines Co. compared to the current price of 32.15 €.
