Why Southwest Airlines Stock Is Falling Today
Southwest Airlines (NYSE: LUV) reported better-than-expected second-quarter earnings on Thursday, but its guidance for the second half of the year was disappointing. Investors didn't like the forecast, sending Southwest shares down 8% on Thursday morning.
Southwest Airlines has historically been one of the most stable companies in the airline industry, but no carrier has been able to escape the macroeconomic headwinds that have plagued airlines in recent years. The pandemic sapped demand for air travel for more than a year, and now even as travelers are returning, higher costs and the threat of a recession are weighing on future travel.
On Thursday, Southwest reported second-quarter adjusted earnings of $1.30 per share on revenue of $6.7 billion, besting the consensus profit estimate by $0.12 on revenue that was in line with expectations. CEO Bob Jordan called the results "a significant milestone in our pandemic recovery" as vacationers have returned to the skies this summer.
Source Fool.com
