Southwest Airlines ( LUV, $28.31) expects improved demand and load factor for May
Southwest Airlines reported improved demand and load factor in May - according to a regulatory filing.
The airline mentioned, in a Securities and Exchange Commission filing, that its operating revenue for April declined 90% to 95% and load factor was about 8% due to the COVID-19 pandemic’s impact on air travel.
However, the company said it experienced "modest improvement" in passenger demand, bookings and trip cancellations in May, leading to net positive bookings through May 18.
Southwest expects May operating revenue to fall 85% to 90% and estimates load factor to be 25% to 30%, compared with previous outlook for a 90%-to-95% decline in operating revenue and load factor of 5% to 10%.
Southwest continues to expect its average daily core cash spending to be in the range of $30 million to $35 million in the second quarter of 2020. For June, it projects its daily cash burn rate to be “in the low-$20 million range.”
LUV in +2.92% Uptrend, advancing for three consecutive days on June 30, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where LUV advanced for three days, in of 300 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where LUV's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 30, 2025. You may want to consider a long position or call options on LUV as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 190 cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LUV moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for LUV turned negative on June 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LUV declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LUV broke above its upper Bollinger Band on May 29, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LUV’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.974) is normal, around the industry mean (2.837). P/E Ratio (36.449) is within average values for comparable stocks, (24.094). Projected Growth (PEG Ratio) (0.550) is also within normal values, averaging (2.434). Dividend Yield (0.022) settles around the average of (0.033) among similar stocks. P/S Ratio (0.752) is also within normal values, averaging (0.633).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LUV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
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General Information
a provider of scheduled air transportation services
Industry Airlines
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