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 saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 14, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where LUV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 October 04, 2024. 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 Momentum Indicator moved above the 0 level on October 23, 2024. You may want to consider a long position or call options on LUV as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for LUV moved above the 200-day moving average on October 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 290 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 178 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 PE Growth Rating for this company is (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 (best 1 - 100 worst), indicating outstanding 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 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (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 (best 1 - 100 worst) indicates that the company is significantly 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 (1.696) is normal, around the industry mean (3.761). LUV has a moderately high P/E Ratio (227.923) as compared to the industry average of (41.175). Projected Growth (PEG Ratio) (0.447) is also within normal values, averaging (0.613). Dividend Yield (0.024) settles around the average of (0.039) among similar stocks. P/S Ratio (0.704) is also within normal values, averaging (1.458).
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 93, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of scheduled air transportation services
Industry Airlines