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.
The Moving Average Convergence Divergence (MACD) for LUV turned positive on May 18, 2023. Looking at past instances where LUV's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LUV's RSI Oscillator exited the oversold zone, of 32 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 02, 2023. You may want to consider a long position or call options on LUV as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LUV advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 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 .
The Aroon Indicator for LUV entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (1.737) is normal, around the industry mean (83.325). P/E Ratio (28.090) is within average values for comparable stocks, (22.085). Projected Growth (PEG Ratio) (0.264) is also within normal values, averaging (0.450). Dividend Yield (0.012) settles around the average of (0.041) among similar stocks. P/S Ratio (0.778) is also within normal values, averaging (1.092).
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 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 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 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
A.I.dvisor indicates that over the last year, LUV has been closely correlated with ALK. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if LUV jumps, then ALK could also see price increases.