#Southwest airlines stock price how to#

Yes, there was a lower volume to handle, but travel hasn't been that stressful for passengers in years and Southwest did everything they could to make it a smooth experience for its passengers. At the same time, in 2020 they produced their best annual on-time performance since 2003 and generated its best-ever annual baggage handling results. In 2018, 19, and 20 Southwest ranked #1 among Marketing Carriers in customer satisfaction. They also lead when it comes to customer satisfaction.

Typically, lower-priced airlines rely on volume to get them across the line. Being able to make this kind of money on lower fares is incredibly impressive and it takes precise management to do so. And if you work in sales, you know margin is sexy. Going back to the business model, it produces a very high margin. I am bullish on oil, but because all players are impacted here and Southwest has a strong cash position, it's a non-issue at this point. Fuel prices are one of the things no one can control outside of hedging against it. The hedge is expected to provide $0.18 of gains in Q4. In Q4, fuel prices are $0.26 higher than in Q3, and that's after factoring in hedging gains. But it's missing a big piece which is fuel, especially in the current market. This is what allows Southwest to offer lower fares than their competitors, which in turn attracts customers. Looking above we can see that the company sets itself apart from the bulk of its peers with regards to operating expenses.

#Southwest airlines stock price how to#

There is no question the world will forever be changed by Covid, but management teams that know how to turn a profit while being a great place to work are rare and the strategy will work in future environments. The issues that they are facing are short-term in the grand scheme of things. Call me crazy, but I firmly believe once this is all over they will once again be profitable. What more could you ask for? Up until Covid hit in 2020, Southwest had been profitable for 47 years. Southwest is a low-cost, high-margin, well-respected airline.

Who doesn't need a little more LUV in their life! What Does Southwest Have Going For Them? Beyond that, the company has managed the balance sheet very well over the last two years and that will set them up for success as the industry recovers into 2022 and beyond. The company offers lower fares, yet rakes in higher margins while keeping customers satisfied which is easier said than done. However, they are my top pick in the industry as we stand today. Southwest Airlines ( NYSE: LUV) seems to fly under the radar a bit due to them classifying as a regional airline. Boarding1Now/iStock Editorial via Getty Images