Southwest Airlines Co. (LUV - Free Report) reported mixed traffic numbers for July 2018. Traffic (measured in revenue passenger miles or RPMs) rose 2.1% to around 12.62 billion and capacity or available seat miles (ASMs) increased 3.2% to 14.62 billion.
However, load factor (percentage of seats filled by passengers) declined 100 basis points (bps) to 86.3% in the month as traffic growth was outpaced by capacity expansion. Additionally, passenger count grew 2.1% to 14,961,408.
In the first seven months of 2018, Southwest Airlines witnessed a 2.8% rise in RPMs to 78.2 billion. Also ASMs rose 2.7% to 93.48 billion. As a result, the load factor increased 10 bps to 83.7%.
The low-cost carrier, which is still reeling under the effects of the Flight 1380 incident in April, anticipates third-quarter revenue per available seat mile (RASM) between down 1% to up 1%. Moreover, the company expects operating expenses per available seat mile (CASM), excluding fuel and oil as well as profit-sharing expenses, to rise 2-3%. Additionally, third-quarter fuel costs are assumed at approximately $2.25 per gallon.
Zacks Rank & Key Picks
Southwest Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation Sector are SkyWest, Inc (SKYW - Free Report) , Old Dominion Freight Line, Inc (ODFL - Free Report) and GATX Corporation (GATX - Free Report) . While GATX carries a Zacks Rank #2 (Buy), SkyWest and Old Dominion sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest, Old Dominion and GATX have gained 63.9%, 51.6% and 35.7%, respectively, in a year’s time.
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Southwest Airlines Co. (LUV - Free Report) reported mixed traffic numbers for July 2018. Traffic (measured in revenue passenger miles or RPMs) rose 2.1% to around 12.62 billion and capacity or available seat miles (ASMs) increased 3.2% to 14.62 billion.
However, load factor (percentage of seats filled by passengers) declined 100 basis points (bps) to 86.3% in the month as traffic growth was outpaced by capacity expansion. Additionally, passenger count grew 2.1% to 14,961,408.
In the first seven months of 2018, Southwest Airlines witnessed a 2.8% rise in RPMs to 78.2 billion. Also ASMs rose 2.7% to 93.48 billion. As a result, the load factor increased 10 bps to 83.7%.
The low-cost carrier, which is still reeling under the effects of the Flight 1380 incident in April, anticipates third-quarter revenue per available seat mile (RASM) between down 1% to up 1%. Moreover, the company expects operating expenses per available seat mile (CASM), excluding fuel and oil as well as profit-sharing expenses, to rise 2-3%. Additionally, third-quarter fuel costs are assumed at approximately $2.25 per gallon.
Zacks Rank & Key Picks
Southwest Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation Sector are SkyWest, Inc (SKYW - Free Report) , Old Dominion Freight Line, Inc (ODFL - Free Report) and GATX Corporation (GATX - Free Report) . While GATX carries a Zacks Rank #2 (Buy), SkyWest and Old Dominion sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest, Old Dominion and GATX have gained 63.9%, 51.6% and 35.7%, respectively, in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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