Morningstar

Morningstar, Inc.

Equity Bottom-Up

Southwest has been consistently profitable for more than 40 years thanks to exceptional execution of its low-cost-carrier strategy, which includes fleet commonality, point-to-point flying at secondary airports, short-haul routes, and a distinct company culture. And, unlike most major carriers that rely on third-party distributors for ticket sales, Southwest has succeeded using its own distribution channel, which accounts for roughly 85% of bookings. Southwest currently commands the largest…

We expect to raise our fair value estimate by no more than 2% after hearing details around Southwest’s MAX-related contingency plans and recalibrating our model for a six-month grounding. We previously modeled a three-month MAX suspension, but Boeing’s slow rollout suggests they could easily slip into peak travel months toward a nine-month period. We use six months as our midpoint and adjust supply and demand accordingly. Our changes incorporate limited spare capacity at Southwest and a lack of…

Southwest has been consistently profitable for more than 40 years thanks to exceptional execution of its low-cost-carrier strategy, which includes fleet commonality, point-to-point flying at secondary airports, short-haul routes, and a distinct company culture. And, unlike most major carriers that rely on third-party distributors for ticket sales, Southwest has succeeded using its own distribution channel, which accounts for roughly 85% of bookings. Southwest currently commands the largest…

We plan to lower our fair value estimates for Southwest, Air Canada, and Westjet by 5%-6% after U.S. and Canadian authorities grounded Boeing 737 MAX aircraft following the second fatal crash in five months. Among the names we cover, the indefinite grounding affects Southwest, American Airlines, United Continental, Air Canada, and Westjet. We find Southwest, Air Canada, and Westjet the most affected because MAX aircraft make up 8% of Air Canada’s current fleet and most of its 2019 aircraft…

We’re maintaining our fair value estimate for airlines operating Boeing’s 737 MAX 8 in lieu of potential Federal Aviation Administration-directed groundings. Plenty of uncertainty remains around what caused the March 10, 2019 Ethiopian Airlines crash that involved a newly delivered 737 MAX 8, so we don’t model a valuation impact from FAA induced cancellations. We realize the MAX 8’s second crash in five months could spook travel markets and weigh on demand, but we already bake in below Street…

United States

Southwest Airlines Co. is a domestic airline that provides primarily short-haul, high-frequency, point-to-point service.  The Company offers flights throughout the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00