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Southwest Airlines to Terminate Service in 2 Cuban Cities
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The Dallas- based low cost carrier Southwest Airlines (LUV - Free Report) became the latest US carrier to reduce its services to Cuba. The carrier has decided not to fly to Varadero and Santa Clara from Sep 5 as the routes had ceased to be viable.
The tweaked Cuba policy announced by President Trump earlier this month might also have played a part in Southwest’s decision. The new policy, which prohibits individual travel to the island nation, might hurt the already weak travel demand to Cuba further. Thus, the revenues of American carriers operating in Cuba are likely to shrink.
Even though Southwest has decided to end its operations to two Cuban cities, it will continue its Havana service. The company operates nonstop flights to the Cuban capital from Ft. Lauderdale (twice daily) and Tampa (once daily) now.
It is to be noted that not only will those flights remain in operation but the carrier has also sought permission from the U.S. Department of Transportation to start a third roundtrip (on a daily basis) connecting Ft.Lauderdale and Havana. Demand on the Havana routes is much stronger than in the smaller Cuban cities. Currently, Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We remind investors that the resumption of scheduled commercial flights to Cuba from the U.S. last year after a gap of more than five decades was greeted warmly by American carriers. In Jun 2016, the U.S. Department of Transportation authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities. Approval to fly to Havana came two months later.
However, a few months after commencement of the service the above enthusiasm started declining. This was because travel demand to Cuba fell short of expectations. Consequently, the likes of American Airlines Group (AAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) trimmed their services to the nation. Also, lower-than-expected demand caused the likes of Frontier Airlines and Spirit Airlines (SAVE - Free Report) to terminate their flights to Cuba.
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Southwest Airlines to Terminate Service in 2 Cuban Cities
The Dallas- based low cost carrier Southwest Airlines (LUV - Free Report) became the latest US carrier to reduce its services to Cuba. The carrier has decided not to fly to Varadero and Santa Clara from Sep 5 as the routes had ceased to be viable.
The tweaked Cuba policy announced by President Trump earlier this month might also have played a part in Southwest’s decision. The new policy, which prohibits individual travel to the island nation, might hurt the already weak travel demand to Cuba further. Thus, the revenues of American carriers operating in Cuba are likely to shrink.
Even though Southwest has decided to end its operations to two Cuban cities, it will continue its Havana service. The company operates nonstop flights to the Cuban capital from Ft. Lauderdale (twice daily) and Tampa (once daily) now.
It is to be noted that not only will those flights remain in operation but the carrier has also sought permission from the U.S. Department of Transportation to start a third roundtrip (on a daily basis) connecting Ft.Lauderdale and Havana. Demand on the Havana routes is much stronger than in the smaller Cuban cities. Currently, Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Southwest Airlines Company Price
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We remind investors that the resumption of scheduled commercial flights to Cuba from the U.S. last year after a gap of more than five decades was greeted warmly by American carriers. In Jun 2016, the U.S. Department of Transportation authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities. Approval to fly to Havana came two months later.
However, a few months after commencement of the service the above enthusiasm started declining. This was because travel demand to Cuba fell short of expectations. Consequently, the likes of American Airlines Group (AAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) trimmed their services to the nation. Also, lower-than-expected demand caused the likes of Frontier Airlines and Spirit Airlines (SAVE - Free Report) to terminate their flights to Cuba.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>