Southwest Airlines (LUV) stock has risen 7.5% since its traffic update on December 7, 2017. Its regional peer JetBlue Airways (JBLU) has also risen 0.93%. Ultra-low-cost carrier Spirit Airlines (SAVE) has risen 6.3%, while Allegiant Travel (ALGT) has risen 4.1%.
United Continental (UAL), which has also improved its unit revenue outlook, has risen 3.8% in the same period. Other legacy players have also gained from the optimistic forecast. American Airlines (AAL) has risen 3.8% in the period, while Delta Air Lines (DAL) has risen 7.2%. Niche legacy player Alaska Air Group (ALK) has risen 8.4%.
The Dow Jones U.S. Airlines Index (DJUSAR) has risen 5.9% in the same period. On the other hand, the broader market tracked by the SPDR S&P 500 ETF (SPY) has risen 1.9% in the period.
Year-to-date (or YTD) as of December 18, 2017, Southwest Airlines has significantly outperformed all its peers. The stock has recorded a rise of 31.8% in the period. No other major carrier comes close to this performance. Delta Air Lines has recorded the next highest gain of ~14.0% in the period. It’s followed by American Airlines, which has posted a rise of 10.3%.
The remaining airlines are now trading in the red. JetBlue Airways has fallen 2.7%, Allegiant Travel has fallen ~7.8%, and United Continental has fallen 11.4% YTD as of December 18. Alaska Air Group has recorded a fall of 17.1% for the same period. Spirit Airlines has continued to underperform its peers with a fall of 22.4% YTD as of December 18.
The Dow Jones U.S. Airlines Index has recorded a rise of 8.5% YTD, underperforming the broader market’s rise of 19.9% in the same period.
Next, let’s take a look at what analysts expect for Southwest Airlines stock.