Unusual number of Southwest Airline (LUV, $54.82) flights cancelled over maintenance issues
Southwest Airlines is experiencing some difficulties as 100 of its flights were recently cancelled, more than any other U.S. airline, and more than 1,000 delayed over maintenance issues. As a result, the airline has announced an ‘operational emergency’ due to the unusual number of grounded jets.
Generally, the company plans to have as many as 20 aircraft removed from service for unexpected maintenance issues every day. 'Hundreds' is a different story altogether, and signals bigger problems at the airline.
This means that the percentage of out-of-service aircrafts among its available fleet of about 750 Boeing 737s has been at least double the daily average.
The airline has subsequently announced a re-haul of its mechanics to address the maintenance items and quickly return aircraft to service. Reportedly, the company has given an ultimatum to its mechanics saying that they must turn in a doctor’s certificate if alleging illness or risk losing their job.
Further, vacations will only be available to those mechanics whose requests have already been approved. For now, the airline will assign them overtime.
On Saturday, 39 Southwest flights were cancelled, more than other airlines, according to FlightAware.
LUV sees MACD Histogram just turned negative
LUV saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 10, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 52 instances where the indicator turned negative. In of the 52 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LUV as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
LUV moved below its 50-day moving average on August 10, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LUV crossed bearishly below the 50-day moving average on July 31, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 .
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 August 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 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 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
LUV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.789) is normal, around the industry mean (3.817). P/E Ratio (25.237) is within average values for comparable stocks, (26.565). Projected Growth (PEG Ratio) (0.311) is also within normal values, averaging (3.228). Dividend Yield (0.018) settles around the average of (0.021) among similar stocks. P/S Ratio (0.705) is also within normal values, averaging (0.806).
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 slightly weaker than average sales and a marginally profitable 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 74, 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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