LUV - Southwest Airlines Co.
| Previous Close | 54.49 |
| Open | 54.34 |
| Bid | 54.25 x 1800 |
| Ask | 54.69 x 1400 |
| Day's Range | 54.13 - 54.85 |
| 52 Week Range | 44.28 - 58.77 |
| Volume | 2499896 |
| Avg. Volume | 3,419,412 |
| Market Cap | 28B |
| Beta (5Y Monthly) | 1.44 |
| PE Ratio (TTM) | 12.15 |
| EPS (TTM) | 4.45 |
| Earnings Date | Jan 23, 2020 |
| Forward Dividend & Yield | 0.72 (1.32%) |
| Ex-Dividend Date | 2019-12-10 |
| 1y Target Est | 60.11 |
- American City Business Journals
Southwest CEO guesses it'd take 5 years to diversify fleet
If Southwest Airlines opted to diversify its fleet away from solely 737s made by Boeing, the process wouldn't take place overnight. "I guess it would take us five years," Southwest Chief Executive Gary Kelly said in an interview with Bloomberg. "It would be a lot of effort and would pre-empt a lot of things we have judged to be important." Kelly has spoken about the possibility of bringing on another aircraft type throughout the 737 Max saga.
- Benzinga
American Airlines Extends 737 MAX Cancellations Until April
American Airlines (NASDAQ: AAL) said Thursday it is pushing back scheduling passengers on its Boeing Co (NYSE: BA) 737 MAX jetliners until April 7, adding further expense and capacity constraints to its system. The news comes one day after Federal Aviation Administration head Stephen Dickson testified before Congress that the agency won't rush a review of corrective steps taken by manufacturer Boeing Co. and a final airworthiness recertification for the MAX. Reuters reported that the FAA has expressed displeasure with Boeing about continuing to raise unrealistic public expectations for the plane's return to service.
- Zacks
Delta Up 3% on Bullish 2020 Outlook, Partners With Wheels Up
Delta (DAL) expects to witness substantial top-line growth in 2020, courtesy of strong travel demand. Simultaneously, the carrier partners with Wheels Up to create a large fleet of private jets.
- Investor's Business Daily
American Delays Boeing 737 Max Again As Southwest Reaches Compensation Deal
American further delayed the Boeing 737 Max as Southwest announced a settlement with the Boeing (BA) Thursday over the grounding.
- Reuters
UPDATE 2-Boeing drops 2019 timeline for 737 MAX return after CEO meets with FAA
Boeing Co on Thursday abandoned its goal of winning approval this month from the Federal Aviation Administration to unground the 737 MAX after Chief Executive Dennis Muilenburg met with senior U.S. aviation officials. The announcement came after a congressional hearing on Wednesday in which numerous automakers prodded the FAA to take a tougher line with Boeing as it continues to review the plane that has been grounded since March after two fatal crashes. FAA Administrator Steve Dickson said Wednesday he would not clear the plane to fly before 2020 and disclosed the agency has an ongoing investigation into 737 production issues in Renton, Washington.
- Reuters
Southwest reaches partial compensation agreement with Boeing for MAX damages
NEW YORK/WASHINGTON (Reuters) - Southwest Airlines Co said on Thursday it had reached a confidential compensation agreement with Boeing Co for a portion of projected financial damages arising from the grounding of its 737 MAX aircraft. The airline, the world's largest 737 MAX operator, also said it would share with its employees proceeds of about $125 million from Boeing. Southwest said it continues to engage in talks with Boeing for further compensation related to the MAX grounding, adding that the details of the talks and the settlement were confidential.
- Barrons.com
Southwest and Boeing Strike a Deal Over 737 MAX Compensation
Southwest announced it will share compensation received from Boeing over the 737 MAX grounding with its employees. It is the first concrete tidbit investors have about how cash will flow from Boeing to its airline customers.
- American City Business Journals
Employees and aircraft orders: What we now know about Southwest's deal with Boeing over the 737 Max
Southwest Airlines has reached an agreement with The Boeing Co. related to the grounding of the Boeing 737 Max – and the airline reiterated plans to share to proceeds with the employees.
- American City Business Journals
This DFW family is helping to tackle the global pilot shortage
Texas employs the most pilots in the country. How is it being affected by the pilot shortage and what's being done about it?
- Benzinga
Boeing Will Compensate Southwest Air Employees For 737 MAX Groundings
Southwest Airlines Co. (NYSE: LUV) on Thursday reached a confidential agreement with Boeing (NYSE: BA) to compensate Southwest for projected financial damages related to the grounding of the airline's Boeing 737 MAX aircraft. The Boeing 737 MAX fleet has been grounded since the Federal Aviation Administration's order was issued on March 13. Southwest Airlines says it continues to monitor information from Boeing and the FAA on the impending 737 MAX software enhancements and training requirements.
- Reuters
UPDATE 4-Southwest reaches partial settlement with Boeing over projected 737 MAX damages
NEW YORK/WASHINGTON Dec 12 (Reuters) - Southwest Airlines Co said on Thursday it had reached a confidential compensation agreement with Boeing Co for a portion of a projected $830 million hit to operating income in 2019 arising from the grounding of its 737 MAX aircraft. The airline, the world's largest 737 MAX operator, said it would share with its employees proceeds of about $125 million from Boeing. Southwest said it continues to discuss with Boeing further compensation related to the MAX grounding, adding that the details of the talks and the settlement were confidential.
- MarketWatch
Southwest to share $125 million settlement with Boeing over grounding of 737 Max with employees
Southwest Airlines Co. said Thursday it has reached a settlement with Boeing Co. over the grounding of its 737 Max fleet totaling about $125 million and that it will share the money with its employees. The sum is the projected reduction in operating profit caused by the groundings, which came after two fatal crashes involving the aircraft. Southwest is still in talks with Boeing regarding compensation for the groundings. The company is expecting to account for most of the compensation as a reduction in the cost of existing and future firm aircraft orders, lowering its depreciation expense in future years. The Boeing 737 Max fleet has been grounded since an order from the Federal Aviation Administration on March 13. Southwest shares were not active premarket, but have gained 16% in 2019, while the S&P 500 has gained 25%.
- PR Newswire
Southwest Airlines To Share Proceeds From Boeing Agreement With Employees
Southwest Airlines Co. (NYSE: LUV) recently reached a confidential agreement with The Boeing Company (Boeing) to compensate Southwest for a portion of projected financial damages related to the grounding of the airline's Boeing 737 MAX aircraft. In light of this agreement, the Southwest Board of Directors has authorized a discretionary, incremental profitsharing accrual for Employees, which is tied to the projected reduction in operating income for annual 2019 due to the MAX groundings. The Company currently estimates this incremental profitsharing accrual to be approximately $125 million.
- TheStreet.com
Southwest Air, Boeing Reach Confidential MAX Compensation Pact
Southwest Airlines strikes a deal to receive compensation for financial fallout related to the grounding of Boeing's 737 MAX aircraft.
- American City Business Journals
Southwest angles for more LaGuardia slots at expense of Delta, WestJet
Southwest said WestJet should divest 16 LaGuardia slots if the carrier's proposed alliance with Delta were to go through.
- American City Business Journals
Southwest beefs up flying in Atlanta, Denver and more for next summer
Southwest Airlines will increase flying in a number of its major airports next summer, the airline announced Wednesday as it extended its booking schedule into August 2020. Southwest Airlines Co. (NYSE: LUV) currently has the 737 Max out of its schedule through early March next year. When the jet eventually comes back into service, that will allow Southwest to expand its network and begin flying more flights.
- American City Business Journals
Southwest Airlines adds summer flights despite not knowing fate of 737 MAX planes
The low-fare behemoth is betting the Boeing MAX will be back in service by the time the peak summer travel season begins.
- American City Business Journals
Major airline to expand San Antonio service to multiple cities
The expansion comes after the carrier cut back service this summer due to issues with the Boeing 737 Max aircraft.
- American City Business Journals
Delta updates 2020 hiring plan with expectations of record-setting year
The pilot hiring plan is part of a broader effort to onboard more than 8,000 aviators in the next decade.
- American City Business Journals
Report: Business travel dip on U.S. airlines flashes economic warning sign
U.S. Travel economists noted that historically, business travel typically declines before leisure travel does as the country heads into an economic slowdown, which is why the October dip is "possibly a worrisome harbinger for the broader economy."
- Bloomberg
Boeing's Timeline on 737 Max Return Foiled Again
(Bloomberg Opinion) -- As another deadline for the return of Boeing Co.’s troubled 737 Max slips out of reach, the aerospace company doesn’t appear to have any better handle on its messaging now than it did when this crisis started more than a year ago.Federal Aviation Administration Administrator Stephen Dickson told CNBC on Wednesday that the agency won’t complete the necessary approvals for the Max’s return until 2020. The plane has been grounded since March following the second of two fatal crashes linked to a flight-control software system. That’s a notable contrast to Boeing’s last official timing update, which called for the FAA to give it the green light to start shipping stockpiled jets by December. Regulators weren’t expected to certify new pilot-training requirements until several weeks later and airlines wouldn’t be able to fly the Max until they did, but beginning the process of clearing out the glut of undelivered jets would help Boeing manage its cash crunch and avoid further production cuts.At the time, I wondered why the FAA would be willing to bifurcate the certification process in order to throw Boeing a bone like this. It would appear from Dickson’s comments that he isn’t on board with this timeline. “Boeing’s plan is not the FAA’s plan,” Dickson said on CNBC. That puts Boeing in the awkward position of once again being on the wrong side of conservatism. The company has repeatedly moved the goal posts for the Max’s return. Boeing initially said it was on track to have the final paperwork on planned software fixes in to the FAA by late March and hosted a junket just weeks after the second crash to sell the fixes to customers and the media. Setbacks ensued, but Boeing told customers it was targeting FAA approval of the software fix as early as the third week of May and an ungrounding around mid-July, according to a Reuters report in April. More setbacks ensued, so Boeing said in July that it expected to have all recertification materials in to the FAA by September with the goal of having the grounding lifted in October – even as the Wall Street Journal reported that regulators and pilot union leaders at the time believed 2020 was more likely. Airline executives have cast their own doubts on Boeing’s timetables, with Gary Kelly, CEO of Southwest Airlines Co. — the largest Max customer — saying last month that he wasn’t “highly confident about a mid-December ungrounding date.”Clearly, no one has had a crystal ball when it comes to the Max crisis, but the past year has taught us the conservative approach is the prudent one, particularly as regulators contend with the damage done to their own reputations and the overall perception of safety in the aviation industry. And it is telling that after all this time, Boeing is still finding itself the one with the most aggressive assumptions.It’s a natural instinct to want to motivate your employees and soothe your shareholders. But amid persistent accusations that Boeing prioritized profits over safety in the development of the Max and rushed the initial rollout, it’s stunning that the company remains blind to the optics of deadlines that repeatedly prove overly optimistic or give the impression of special treatment from the FAA. Boeing has made changes to insulate its engineers from the company’s financial concerns and offered frequent sweeping commitments to safety. That said, CEO Dennis Muilenburg wasn’t willing or wasn’t able to detail specific changes to the company’s relationship with the FAA that he would support when he testified before Congress in October. I remain unconvinced that the right incentives are in place to ensure Boeing makes the kind of deep-rooted changes that are necessary, but the FAA’s unwillingness to be corralled into following the company’s timelines is a positive start.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- American City Business Journals
Alaska, Delta back use of biometrics at Sea-Tac Airport
Alaska first tested fingerprint identification at its operation at San Jose Airport and in its lounges in 2015.
- American City Business Journals
Southwest to add flights at Lambert during summer months
St. Louis Lambert International Airport's largest carrier — Southwest Airlines — is adding 14 to 22 additional daily departures this summer.
- PR Newswire
Start Summer Vacation Planning Today: Southwest Airlines Extends Flight Schedule Through August 10, 2020
Southwest Airlines Co. (NYSE: LUV) today extends its bookable flight schedule through Aug. 10, 2020. As part of the schedule extension, Southwest also announces plans to bring new service to some of the largest cities across its network including: Atlanta, Baltimore/Washington, Chicago (Midway), Denver, Houston (Hobby), and Nashville.
