LUV - Barbarians At Southwest Gate Overdo Upgrade Plea
2024-06-14 05:40:00 ET
Summary
- Under Bob Jordan’s tenure as chief executive since early 2022, Southwest Airlines' persistently gloomy financial outlook has been at odds with a broader industry resurgence, leaving its stock to languish.
- A travel rebound following the pandemic sparked a surge in Americans traveling internationally, with little help to domestic-focused Southwest.
- Government-imposed production caps on Boeing, whose 737 planes the company uses, also stung.
By Breakingviews
Southwest Airlines (LUV) flew straight into treacherous territory. Under Bob Jordan's tenure as chief executive since early 2022, the U.S. carrier's persistently gloomy financial outlook has been at odds with a broader industry resurgence, leaving its stock to languish. His slow response makes him and the company easy targets for an agitator like newly checked-in dissident Elliott Investment Management. Resetting the course, however, is harder than the hedge fund manager suggests....
Barbarians At Southwest Gate Overdo Upgrade Plea