Southwest Airlines Stock News

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.

It was a turbulent and ultimately terrible first quarter for airline stocks. The second quarter may not be much better for the industry.

Paul Singer, the founder and head of Elliott Investment Management, is one of the world's most successful and influential activist investors working today.

Investors turned tail on airline stocks in March, amid mounting signs that all the uncertainties surrounding fiscal policy and the economy are finally talking their toll on consumers, and their desire to spend on travel and experiences.