Southwest Airlines stock dropped after facing
lawsuits from the Department of Transportation for 'chronically delayed flights'. Followed by this,
Citigroup reiterated a 'Sell' rating, leading to
stock price appreciation and selling of Southwest shares.
Subsequently, the carrier achieved
IOSA (International Operational Safety Audit) certification propelling
international growth. However, to deal with lawsuits and associated cost, Southwest has implemented bold cost-cutting measures.
Amid this, burn issues like
pilot scandal,
legal woes, and sale promotions still persist. The company recently completed the sale and leaseback of 36 aircraft to
Babcock & Brown Aircraft Management to increase capital.
Additionally, Southwest faces
activist hedge fund pressure with call for board change. Amid pressures, its CFO and Admin officer are set to retire, adding further
organizational changes. Despite the turmoil, Q3 earnings and
revenues beat estimates.
Recently, the carrier announced leadership changes, board refreshments, and new independent director appointments.
The story ends with Southwest still under lawsuit, yet showing promising future moves with more earnings and stock buybacks.
Southwest Airlines LUV News Analytics from Fri, 19 Jul 2024 07:00:00 GMT to Sat, 18 Jan 2025 08:43:18 GMT -
Rating -5
- Innovation -3
- Information 7
- Rumor -7
