Southwest Airlines Stock News

The stock market was experiencing its biggest one-day declines in several years on Thursday in the wake of President Trump's tariff announcements. Not only will the tariffs affect over 180 countries around the world, but for the most part, they were also far worse than experts had anticipated.

Southwest Airlines last month said it will start charging customers to check bags in May. Fitch warned that the policy change and other moves could weaken Southwest's competitive position.

Travel stocks slumped after President Trump's latest round of tariffs fueled concerns about less spending by Americans and reduced international travel.

Airlines have been in a flat spin recently, due to macroeconomic turmoil. Certain airlines are growing despite the market outlook, and have advantages in certain areas, including valuations and efficiency. The full-year outlook is broadly unchanged for the market demand-wise, with load factors increasing YoY despite RPK decreases.

An assertive set of recommendation downgrades of airline stocks by a researcher was a major factor in the decline of Southwest Airlines (LUV -5.96%) stock on Tuesday. Of the four carriers that received a chop, Southwest was one of only two that was demoted to underperform, or sell.

On Tuesday investment banking company Jefferies downgraded its rankings on Delta, American Airlines, Southwest Airlines, and Air Canada. This has caused airline stocks to trade significantly lower today with Delta down over 3%, Southwest Airlines down over 5%, and American Airlines down around 2.9%.

Airline stocks slumped Tuesday after Jefferies analysts lowered their ratings for three of the four major U.S. carriers, writing “consumer sentiment continues to disappoint.”

Airline stocks traded lower Tuesday. Concerns are growing about travel demand, with a decline in spending and consumer confidence.