Why Southwest Airlines and US Airways Love the AMR Bankruptcy

Southwest Airlines Co. (NYSE:LUV): November sales climb 2.5% Y/Y for Southwest Airlines to more than 8.28B revenue passenger miles; capacity +0.7%, load factor 81.6% vs. 80.2% last year, unit revenue +9%. CFO forecasts an “exceptional” increase in unit revenue for December and reports the firm is not looking for labor concessions in the wake of AMR’s (NYSE:AMR) bankruptcy.

LUV shares recently traded at $8.46, down $0.01, or 0.12%. They have traded in a 52-week range of $7.15 to $13.59. Volume today was 4,720,173 shares versus a 3-month average volume of 10,009,700 shares. The company’s trailing P/E is 43.16, while trailing earnings are $0.20 per share. Get the most recent company news and stock data here >>

US Airways Group Inc. (NYSE:LCC): The November report from U.S. Airways bodes well for the airline industry: the airline had fewer empty seats and healthy consumer demand for the month. Passenger profits per available seat mile rose 13% Y/Y, 83.8% of seats were filled, and overall capacity fell 0.8%. Fares have gained sharply industry-wide Y/Y with the pattern likely to continue as capacity cuts rise, led by AMR.

LCC shares recently traded at $5.11, down $0.01, or 0.2%. They have traded in a 52-week range of $3.96 to $11.56. Volume today was 2,987,082 shares versus a 3-month average volume of 7,059,310 shares. The company’s trailing P/E is 10.18, while trailing earnings are $0.50 per share. Get the most recent company news and stock data here >>

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