With shares of Southwest Airlines (NYSE:LUV) trading around $27, is LUV an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States. Consumers and companies across the nation are now looking to travel at an increasing rates, and since air travel is quicker and is becoming less expensive, it is becoming a common transportation method for many. As costs decrease and flights become more efficient, look for business and retail customers to fly at rising rates. Southwest Airlines stands to see soaring profits as consumers and businesses look to travel more than ever.
A Southwest plane has backed into a JetBlue (NASDAQ:JBLU) plane at a terminal at Boston Logan Airport Monday morning. The incident happened as the Southwest plane began to leave its gate, and a wing of the plane hit part of the tail wing of a JetBlue plane that was sitting out of the gate. The collision took a chunk out of one of the wings of the Southwest plane. It wasn’t immediately clear if the JetBlue plane received any damage. Adam Cowley, a passenger on the Southwest flight that was scheduled to leave for Kansas City, Missouri just after 7 a.m., said as the plane was backing out, he felt a bump, looked out the window, and saw his plane and the JetBlue plane touching. The planes were separated at around 8 a.m.
A spokesperson for Massport, the agency that runs Logan Airport, said in a statement that as the Southwest plane was pushing back from the gate, its “wingtip struck the horizontal stabilizer of an empty parked JetBlue” plane. The incident has not affected airport operations, the statement read, and no one was injured. Southwest reports that it is working to get the 108 passengers who were on the plane onto other flights. Meanwhile, the airline stated, the plane involved in the collision is “out of service for repairs and inspection.” The FAA is also investigating.