MENU
Go to the list of all blogs
Sergey Savastiouk's Avatar
published in Blogs
Oct 22, 2020

Southwest Airlines (LUV, $41.49) reports largest-ever loss, as COVID-19 continues to hurt

Southwest Airlines  reported its biggest quarterly loss ever, with  the COVID-19 pandemic  continues to hurt air travel. However, the airline is has tapered its cash-burn rate.

The airline’s third-quarter loss came in at -$1.2 billion, or -$1.96 a share, vs. income of $659 million, or $1.23 a share, in the same period a year ago. Excluding special items, Southwest loss was -$1.2 billion, or -$1.99 a share. Analysts polled by FactSet had been expecting a loss of -$2.35 a share.

The quarterly operating revenue was $1.8 billion, down -68% year-over-year.

As of third quarter-end, Southwest had  liquidity of $15.6 billion, consisting of cash and short-term investments of $14.6 billion and a secured revolving credit facility of $1 billion.

The airline’s cash-burn rate, ( measures how much cash an airline is using to continue operations despite losses), was around $16 million per day in the third quarter, an improvement from average core cash burn of approximately $23 million per day in the second quarter. The company cited improving revenue trends as the primary reason.  

For the month of October, Southwest’s cash burn rate is estimated to be approximately $12 million per day, while fourth quarter 2020 is currently estimated to be approximately $11 million per day, “driven primarily by continued modest improvements in close-in leisure demand and booking trends, as well as cost savings from voluntary employee separation and leave programs,” according to Southwest’s statement.

“While we continue to make progress on reducing cash burn, in order to achieve cash burn break even, we estimate operating revenues will need to recover to an estimated 60-70% of 2019 levels, which is roughly double our third quarter 2020 levels,” CEO Gary Kelly said.

Southwest said it will soon stop blocking middle seats, a measure it had in place amid the pandemic. “This practice of effectively keeping middle seats open bridged us from the early days of the pandemic, when we had little knowledge about the behavior of the virus, to now,” Southwest said. “Today, aligned with science-based findings from trusted medical and aviation organizations, we will resume selling all available seats for travel beginning December 1, 2020.”

Tickeron's analysis suggests: 

LUV's MACD Histogram crosses above signal line

The Moving Average Convergence Divergence (MACD) for LUV turned positive on October 09, 2020. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in 27 of 34 cases over the following month. The odds of a continued upward trend are 79%.

Current price $41.49 crossed the support line at $38.67 and is trading between $53.79 support and $38.67 support lines. Throughout the month of 09/21/20 - 10/21/20, the price experienced a +6% Uptrend. During the week of 10/14/20 - 10/21/20, the stock enjoyed a +2% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 07, 2020. You may want to consider a long position or call options on LUV as a result. In 47 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.

LUV moved above its 50-day Moving Average on August 18, 2020 date and that indicates a change from a downward trend to an upward trend.

The 10-day Moving Average for LUV crossed bullishly above the 50-day moving average on August 17, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 77%.

Following a +1.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in 223 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.

The Aroon Indicator entered an Uptrend today. In 163 of 247 cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.

Bearish Trend Analysis

The 10-day RSI Indicator for LUV moved out of overbought territory on September 17, 2020. 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 44 similar instances where the indicator moved out of overbought territory. In 24 of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at 55%.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.

LUV broke above its upper Bollinger Band on October 09, 2020. 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.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 62%. During the last month, the daily ratio of advancing to declining volumes was 1.26 to 1.

The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. LUV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (2.16) is normal, around the industry mean (2.17). LUV has a moderately high P/E Ratio (99.18) as compared to the industry average of (29.03). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.62). Dividend Yield (1.30) settles around the average of (0.89) among similar stocks. LUV's P/S Ratio (1.16) is slightly higher than the industry average of (0.64).

The Tickeron SMR rating for this company is 88 (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 91 (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 92, placing this stock better than average.

 

 

Related Ticker: LUV

LUV's RSI Indicator peaks and leaves overbought zone

The 10-day RSI Oscillator for LUV moved out of overbought territory on June 11, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 instances where the indicator moved out of the overbought zone. In of the 29 cases the stock moved lower in the days that followed. This puts the odds of a move down at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on June 12, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on LUV as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

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.

Bullish Trend Analysis

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 296 cases, the price rose further within the following month. 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 .

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 (1.910) is normal, around the industry mean (2.752). P/E Ratio (35.270) is within average values for comparable stocks, (23.823). Projected Growth (PEG Ratio) (0.532) is also within normal values, averaging (2.191). Dividend Yield (0.023) settles around the average of (0.033) among similar stocks. P/S Ratio (0.728) is also within normal values, averaging (0.614).

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 77, placing this stock worse than average.

Notable companies

The most notable companies in this group are Delta Air Lines (NYSE:DAL), United Airlines Holdings (NASDAQ:UAL), Southwest Airlines Co (NYSE:LUV), American Airlines Group (NASDAQ:AAL), JetBlue Airways Corp (NASDAQ:JBLU).

Industry description

Airlines industry comprises passenger air transportation, including scheduled and non-scheduled routes. This can include charter airlines, as well as regular commuter ones. Discount pricing and the rise of low-cost carriers over recent decades have expanded the industry by making its services accessible to a much larger global population, compared to the older days when airline travel was a relative luxury for many people in the world. Delta Air Lines Inc., Southwest Airlines Co and United Continental Holdings, Inc. are some of the airlines with the largest stock market capitalizations in the U.S.

Market Cap

The average market capitalization across the Airlines Industry is 7.12B. The market cap for tickers in the group ranges from 9.36K to 30.82B. DAL holds the highest valuation in this group at 30.82B. The lowest valued company is KLMR at 9.36K.

High and low price notable news

The average weekly price growth across all stocks in the Airlines Industry was -2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 5%. ELALF experienced the highest price growth at 10%, while SEGSF experienced the biggest fall at -21%.

Volume

The average weekly volume growth across all stocks in the Airlines Industry was -18%. For the same stocks of the Industry, the average monthly volume growth was 4% and the average quarterly volume growth was 12%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 57
P/E Growth Rating: 55
Price Growth Rating: 55
SMR Rating: 62
Profit Risk Rating: 77
Seasonality Score: -28 (-100 ... +100)
Related Portfolios: TRAVEL INDUSTRY
View a ticker or compare two or three
LUV
Daily Signalchanged days ago
Gain/Loss if bought
Show more...
Interact to see
Advertisement
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of scheduled air transportation services

Industry Airlines

Profile
Fundamentals
Details
Industry
Airlines
Address
P.O. Box 36611
Phone
+1 214 792-4000
Employees
74806
Web
https://www.southwest.com
Interact to see
Advertisement
Paper wallets are extremely useful tools – beyond being one of the most popular and secure cold storage methods, they make it simple to transfer coins between owners.You can access the funds on your paper wallet by “sweeping” (or importing) them to either a live wallet (like Trezor or Exodus) or an exchange service (like Coinbase). Most services allow you to import them directly from your wallet’s private key, but there are two key exceptions.
Learn the 27 essential intraday trading rules that every manual trader should master—and discover how Tickeron’s AI platform applies them automatically for consistent, emotion-free execution and smarter, real-time decision-making.
#investment#trading
A $2 trillion sell-off has investors asking: is 2025 the next dot-com crash or a replay of the 2008 recession? This deep dive compares both scenarios, outlines warning signs, and reveals how AI-powered trading strategies can help navigate rising volatility.
#trading#investment
New to trading? Discover 21 powerful lessons every beginner must learn—and see how Tickeron’s AI Double Agent strategies apply them in real time. From mastering risk to managing emotions, this guide helps you trade smarter, safer, and more confidently.
#investment#trading
From the railroads of the 1920s to the AI giants of 2025, market history shows that extreme concentration often precedes massive bubbles and crashes. This article explores five key turning points and how Tickeron’s AI helps traders navigate today’s bubble-prone landscape.
#investment#trading
U.S. tariff tensions rocked markets this week, sending tech stocks into retreat and safe-haven assets like gold and the yen soaring. As investors brace for major earnings and global policy shifts, volatility remains high across equities, currencies, and commodities.
#investment#trading
Tesla’s Q1 2025 earnings could surprise investors as the EV giant looks to rebound from last quarter’s miss. With lowered expectations and increased volatility, Tickeron’s AI-powered strategy helps traders navigate both upside potential and downside risk.
#investment#trading
Gold is on a historic run—up 29% YTD with record-breaking inflows and growing macro tailwinds. Discover why smart investors are eyeing gold, silver, and miners for opportunity, and how AI trading tools are unlocking new ways to profit from the 2025 gold rush.
#investment#trading
Tickeron launches its innovative Double Agent Trading Bot, combining long NVDA trades with hedged NVDS positions. Using AI-driven pattern trading and real-time risk management, the bot achieves a 75% success rate, revolutionizing automated trading strategies.
#trading#investment
Tickeron’s AI trading bots are setting new standards in finance, achieving up to 86.6% win rates across leveraged and sector ETFs. Powered by advanced Financial Learning Models (FLMs), Tickeron’s AI delivers precision, adaptability, and real-time trading success.
#trading
Wall Street expects strong profit growth from the Magnificent Seven tech giants in 2025. Discover how to trade Apple, Microsoft, Amazon, Nvidia, Tesla, Meta, and Alphabet using AI-powered Double Agent strategies and smart hedging with inverse ETFs like QID.
On May 2, 2025, a diverse group of companies across energy, financial services, basic materials, consumer discretionary, and healthcare will release their Q1 2025 earnings.
In April 2025, five tech giants—NVIDIA, Tesla, Meta, Palantir, and Amazon—each surged over 40%, driven by AI breakthroughs, strong earnings, and market momentum. Discover what fueled the rally and how Tickeron’s AI trading bots helped investors outperform even these star stocks.
#investment
Markets ended April with mixed signals—gold slid on trade optimism, Big Tech lifted the Nasdaq, and Bitcoin steadied near $94K. With U.S. GDP contracting and job growth beating forecasts, investors brace for more volatility amid tariffs and central bank moves.
In a turbulent market, Tickeron's AI-powered Double Agent Bot is outperforming traditional strategies. Leveraging real-time intraday signals and inverse ETFs, the bot posted a +9.77% quarterly gain while the S&P 500 dropped 9.28%. Here's how AI is reshaping trading.
#trading
As Warren Buffett announces his retirement, investors turn to his trusted Buffett Indicator—a ratio of market cap to GDP—as a key gauge of market valuation.
#investment
Markets move in repeating cycles—Accumulation, Uptrend, Distribution, and Downtrend. Learn how to recognize each phase and deploy Tickeron’s AI-powered Double Agent strategy to adapt, protect capital, and profit in any market condition.
#trading
Discover how confirmation trading techniques—like moving average crossovers and volume-backed breakouts—can improve accuracy and reduce false signals. Learn how Tickeron’s AI automates these strategies for smarter, faster, and more disciplined trading.
#trading
Hedge funds are ramping up bearish bets on small-cap stocks, with Russell 2000 short interest hitting new highs. As macro headwinds mount and technical support teeters, Tickeron’s AI Double Agents step in to navigate the looming sell-off with precision.
#investment#trading#artificial_intelligence
SPY’s Momentum Indicator turned bullish on April 25, 2025, signaling a potential trend shift with a 90% historical success rate. This article explores how economic scarcity, technical signals, and AI-driven tools like Tickeron’s A.I.dvisor shape investor decisions in volatile markets.
#trading