Southwest Airlines Co (LUV - Free Report) plans to initiate services to Miami International Airport and Palm Springs International Airport as leisure-travel demand gradually picks up. Subject to government approval, the year-round services are expected to begin later this year. The airline will soon announce its initial flight schedule and service profile for each airport.
Southwest’s CEO Gary Kelly stated, “Adding these specific airports to our route map will bring us access to additional revenue at a critical time. It matches our available fleet with demand for very popular destinations.”
With coronavirus concerns continuing, the carrier is still experiencing significantly weak passenger demand and bookings on a year-over-year basis. However, travel demand has improved from the lows of March and April.
Thanks to low demand, Southwest’s operating revenues plunged 70-75% year over year in July. Operating revenues are expected to have declined 70-75% in August as well. The carrier witnessed an improvement in booking trends for September compared to August. Consequently, the airline anticipates operating revenues to decline 65-75% year over year this month.
Zacks Rank & Key Picks
Southwest carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are Canadian Pacific Railway Limited (CP - Free Report) , Landstar System Inc (LSTR - Free Report) and Knight-Swift Transportation Holdings Inc (KNX - Free Report) . While Canadian Pacific carries a Zacks Rank #2 (Buy), Landstar and Knight-Swift sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Canadian Pacific, Landstar and Knight-Swift have rallied more than 13%, 16% and 26%, respectively, so far this year.
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