Report
Chris Higgins
EUR 98.48 For Business Accounts Only

Southwest faces headwinds in 2017 due to higher oil prices and wage pressures.

Southwest Airlines reported first-quarter results that missed consensus expectations, as costs increased due to fuel and labor costs, as well as expenses related to the rollout of a new reservation system. However, management noted that the yield environment is improving and we note that all the major U.S. airlines anticipate year-over-year unit revenue growth next quarter. We’re planning to increase our fair value estimate due to a decrease in the U.S. statutory tax rate to 25% from 35%, which ...
Underlying
SOUTHWEST AIRLINES CO.

Southwest Airlines operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The company has Boeing 737 aircraft in its fleet and serves destinations in various states, the District of Columbia, the Commonwealth of Puerto Rico, and other near-international countries such as Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. The company principally provides point-to-point service, which allows for direct nonstop routing. The company also provides a suite of digital platforms to support Customers' needs prior to and during the course of their travel.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Chris Higgins

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