8/21/2023 0 Comments Southwest airlines stockFor 2022, capacity is expected to decline 7.5-9.5% from the 2019 levels. Southwest Airlines expects fourth-quarter 2022 capacity to decline 2% from the fourth-quarter 2019 actuals. The midpoint of the guided range is much higher than the fourth-quarter 2021 actuals of $2.25. Fuel cost per gallon in fourth-quarter 2022 is expected in the $3.10-$3.20 band. In third-quarter 2022, fuel price per gallon escalated 68.7% to $3.39. Oil price is moving north, primarily because of supply concerns stemming from Russia-Ukraine war. Key RisksĮscalating fuel costs pose a threat to the company’s bottom line. At the end of the third quarter, the carrier’s cash and cash equivalents were $10,443 million, higher than the long-term debt (less current maturities) of $8,315 million, implying that the company has enough cash to meet its debt obligations. Southwest Airlines' liquidity position raises optimism in the stock. The dividend will be paid out on to its shareholders of record at the close of business on Jan 10, 2023. With the carrier returning to profitability in March 2022 and expecting to be profitable for full-year 2022 as well, the decision was hugely-expected. LUV expects to end the next year with 841 planes in its fleet.įollowing the lifting of restrictions under the CARES Act, which prohibited airlines from paying dividends till Sep 30, management reinstated its quarterly dividend of 18 cents per share. Southwest Airlines’ fleet-modernization efforts are commendable as well. Management expects fourth-quarter 2022 operating revenues to register 13-17% growth compared with 2019 levels. The gradual improvement in air-travel demand is a huge boon for Southwest Airlines, currently carrying a Zacks Rank #3 (Hold). However, escalated fuel costs, a primary headwind, are limiting its bottom-line growth. Data for stocks traded on the NYSE, NASDAQ, AMEX and OTC are delayed 20 minutes.Southwest Airlines LUV is benefiting from an uptick in air-travel demand (particularly on the leisure front) and the same is expected to continue. We will not be liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein. All information provided "as is" without warranty, for informational purposes only - it is not intended for trading purposes nor as advice. Data is deemed reliable but not guaranteed. For investment advice, please seek personal assistance from your financial adviser. Buying stocks or options will expose you to the risk of losing all or more than all of your capital. As you know, historical movements and returns are not indicative of future gains or market movement. All trademarks are the property of their respective owners.Īs a disclosure, nothing mentioned is a recommendation to buy or sell stock, nor is this a prediction upon the direction of the market. Short interest for stocks listed on Stock Exchanges: Copyright © 2023 ShortSqueeze® - Wetherill Investment Inc.
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