Why Southwest Airlines Stock Flew South in September
Storm clouds are building over the airline industry, and Southwest Airlines (NYSE: LUV) is having a difficult time navigating through the turbulence. Shares of Southwest fell 14.3% in September, according to data provided by S&P Global Market Intelligence, as investors weighed the impact of sluggish demand and higher oil prices.
The airline industry has bounced back nicely from pandemic lows thanks to strong consumer demand. Vacationers flush with cash and eager to get out of the house have filled airports and planes over the past few years. But rising interest rates and the potential of a slowing economy appear to be eating into demand, just as costs are going up due to new labor contracts and higher fuel prices.
Southwest in September updated its guidance for the third quarter, lowering its outlook for revenue slightly and raising its fuel cost guidance by about 6%. The company joined a chorus of other airlines fretting about a weary consumer and warning they might need to rethink the aggressive capacity expansion that occurred when demand was strong.
Source Fool.com
Southwest Airlines Co. Stock
Currently there is a rather positive sentiment for Southwest Airlines Co. with 14 Buy predictions and 6 Sell predictions.
With a target price of 33 € there is a positive potential of 39.74% for Southwest Airlines Co. compared to the current price of 23.62 €.
