Why Southwest Airlines Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
Southwest Airlines (NYSE:LUV) shares are falling after the company lowered its outlook for second-quarter unit revenues, now expecting a 4% to 4.5% decline. Despite this, the company anticipates a record for operating revenue in Q2 2024. The airline is also facing pressure from Elliott Investment Management to reconsider its 'bags fly free' policy.
June 26, 2024 | 11:42 am
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Southwest Airlines shares are down 3.16% premarket after the company lowered its Q2 unit revenue outlook to a 4% to 4.5% decline. Despite this, the company expects a record for operating revenue in Q2 2024. Additionally, Elliott Investment Management is pressuring the airline to reconsider its 'bags fly free' policy.
The lowered revenue outlook directly impacts investor sentiment negatively, causing a drop in share price. The pressure from Elliott Investment Management adds uncertainty regarding potential changes to the business model, further affecting investor confidence.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100