Why Southwest Airlines Stock Is Flying Lower Today
Quality issues at Boeing (NYSE: BA) are wreaking havoc on the aerospace giant's customers, causing airlines to rethink their growth plans. Shares of Southwest Airlines (NYSE: LUV) were down 14% as of 11:30 a.m. ET after the company said it was trimming capacity and reevaluating its financial forecasts for the year.
Boeing investors have been taken on a turbulent ride in recent years, and the company's customers have not been treated much better. Boeing has been plagued by design and quality issues related to its 737 MAX and other airframes, leading to regulatory actions including groundings and manufacturing slowdowns.
Southwest, which is famously an all-Boeing 737 operator, is feeling the impact. The airline said it has been advised by Boeing to expect just 46 737-8 deliveries this year. The airline had planned to take 58 737-8s and 21 737-7s, but the smaller MAX-7 hasn't yet been certified by the Federal Aviation Administration (FAA).
Source Fool.com
Boeing Co. Stock
Currently there is a rather positive sentiment for Boeing Co. with 30 Buy predictions and 5 Sell predictions.
With a target price of 233 € there is a positive potential of 48.6% for Boeing Co. compared to the current price of 156.8 €.
