We are going below 10, if we hit the Fiscal Cliff we could go below 9 if the market really gets wracked. I am betting that LUV is above 12 by next January but in the near term no bets are certain. I am a buyer mid-January.
LUV has had a good run lately based on the fact that they're going to start charging for luggage and are going to raise ticket prices. The price may have run ahead of the actual benefits of these policy changes, which will also reduce their competitivelness. The fact that they're raising ticket prices and luggage fees is also a signal that their business model is stressed.
the anouncement was that they were going to raise oversize and overweight fees. two bags fly free. also, they were going to charge for no shows on the cheap tickets. this all make for common sense. their basic plan is still the same. remember they make a profit and have never gone the bankrupt route.
When are you going to realize this stock is DEAD? Its over. By decades end this company will be in CH 11. UAL, DAL and merged American Airways are going to strangle this Greyhound of the skies forever. Early next year Kelly and the rest of his clown regiment will roll into the big top in a VW and announce furloughs for the AirTrash employess he couldn't work with because that 717 is soooooo complicated. Idiot. Barely able to hold 7$ Billion in market cap this stunning loser trading at SEVENTEEN times earnings will contract to less than $5 Billion. Trust me the industry wont blink an eye as the sun sets on this has been.