Southwest (LUV, $53.19) flights cancelled due to multiple issues
Dallas-based airline Southwest Airlines has been losing millions per week as flights continue to get cancelled, as maintenance issues owing to a feud with the mechanics’ union is resulting in an increased number of out-of-service jets.
Recently, the airline sued the union over allegations that they are encouraging members to purposefully write-up minor maintenance issues to keep jets out of service in order to gain leverage in contract talks, which began more than six years ago. The union, however, denied such allegations.
Previously, the airline has announced operational emergencies at several of its maintenance bases, giving an ultimatum to the mechanics to either show up at work or to lose their jobs.
On Tuesday, 89 Southwest flights were cancelled, nearly 2% of its schedule, according to flight-tracking site FlightAware. In comparison, JetBlue (JBLU) had 12 cancelled flights and United (UAL) had eight. As a result, customers are being harmed, and the airline’s employees suffering through reduced profit sharing.
After receiving a federal approval last month to operate on longer routes with the airline’s Boeing 737s, the company is now interested to widen its route network sharing routes with other airlines which would allow Southwest to fly one segment of a route and be able to sell tickets on another leg that is operated by another carrier.
LUV's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for LUV turned positive on October 23, 2026. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in 37 of 52 cases over the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on LUV as a result. In 58 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
LUV moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +6.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in 224 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
LUV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 131 of 207 cases where LUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for LUV crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 87%.
The 50-day moving average for LUV moved below the 200-day moving average on September 23, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 48 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 67 (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 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 (2.884) is normal, around the industry mean (1.836). LUV has a moderately high P/E Ratio (25.457) as compared to the industry average of (5.568). Projected Growth (PEG Ratio) (0.200) is also within normal values, averaging (2.252). Dividend Yield (0.017) settles around the average of (0.026) among similar stocks. P/S Ratio (0.683) is also within normal values, averaging (0.529).
The Tickeron PE Growth Rating for this company is 89 (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 Profit vs. Risk Rating rating for this company is 100 (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 76, 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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