Southwest Airlines CEO Admits Competition Will Be Fierce

In a candid letter to employees, Southwest Airlines (NYSE:LUV) CEO Gary Kelly puts forth the resounding message the company now has plenty of competition in the low-cost carrier business, as rivals regenerate post-bankruptcy to follow in Southwest’s footsteps. Kelly says LUV’s edge has been halved by budget carriers like JetBlue (NASDAQ:JBLU) and Spirit Airlines (NASDAQ:SAVE), as well as large legacy airlines.

Here’s how discount airlines are trading now:

Southwest Airlines Co. (NYSE:LUV): LUV shares recently traded at $8.56, up $0.14, or 1.66%. They have traded in a 52-week range of $7.15 to $13.59. Volume today was 3,596,945 shares versus a 3-month average volume of 9,649,460 shares. The company’s trailing P/E is 43.67, while trailing earnings are $0.20 per share. Get the most recent company news and stock data here >>

JetBlue Airways Corporation (NASDAQ:JBLU): JBLU shares recently traded at $5.47, up $0.21, or 3.99%. They have traded in a 52-week range of $3.40 to $7.13. Volume today was 4,840,859 shares versus a 3-month average volume of 5,374,300 shares. The company’s trailing P/E is 22.87, while trailing earnings are $0.24 per share. Get the most recent company news and stock data here >>

Spirit Airlines Incorporated (NASDAQ:SAVE): SAVE shares recently traded at $15.44, down $0.13, or 0.83%. They have traded in a 52-week range of $10.18 to $17.48. Volume today was 147,604 shares versus a 3-month average volume of 190,895 shares. The company’s trailing P/E is 10.47, while trailing earnings are $1.47 per share. Get the most recent company news and stock data here >>