Why Shares in Southwest Airlines Declined This Week
Shares in Southwest Airlines (NYSE: LUV) declined by 18.1% this week through early Friday morning trading. The setback occurred after Southwest management gave a disappointing update at the JPMorgan Industrials Conference.
The bad news is arguably as much about Boeing (NYSE: BA) as it is about Southwest. Unfortunately, the quality control issues at the former are causing airplane delivery delays. Southwest now expects to receive just 46 deliveries of the Boeing 737-8 airplane in 2024 compared to a previous expectation for 737 MAX deliveries, which included 58 deliveries of the Boeing 737-8.
If you are wondering where the other deliveries went, the airline said it's assuming no 737-7 "aircraft deliveries and continues to assume no -7 aircraft are placed into service this year based on the current certification status."
Source Fool.com
Southwest Airlines Co. Stock
Our community is currently high on Southwest Airlines Co. with 28 Buy predictions and 11 Sell predictions.
As a result the target price of 41 € shows a slightly positive potential of 17.82% compared to the current price of 34.8 € for Southwest Airlines Co..
