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Southwest Airlines Grounds Itself

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 11 October 2021

⏱️ 19 minutes

🧾️ Download transcript

Summary

With earnings later this week from Goldman Sachs, Bank of America, Wells Fargo and other big banks, how are deposits and loan activity looking? And why is JPMorgan Chase more interested in inflation than the others? Jason Moser previews the latest episode of “Industry Focus” and analyzes Southwest Airlines’ rough weekend and the box office results for “No Time To Die”.

Transcript

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0:00.0

It's Monday, October 11th. Welcome to Marketfoolery. I'm Chris Hill, joining me today, the name's

0:08.3

Moser. Jason Moser. Thanks for being here. That was well done. I mean, people, it'll make

0:15.1

more sense as we go on here, but I like that. That was very, very good. Yeah, we're going

0:19.2

to get to James Bond and how James Bond did over the weekend. And we're also going to

0:23.2

get to the big banks that are kicking off earnings season later in the week. But first,

0:28.8

we're going to talk about Southwest Airlines because shares are down a bit today after they

0:33.6

canceled nearly 2,000 flights over the weekend. Southwest blamed it on a combination of bad

0:39.8

weather, air traffic control issues and staffing problems. Although I will point out, other

0:46.4

airlines have to deal with bad weather and air traffic control. And other airlines weren't

0:51.4

canceling the early 2000 flights this weekend. You know, we talked the other day on

0:57.4

Marketfool money about hiring, being an issue that's probably going to come up this

1:04.2

earnings season on a lot of conference calls. You look at the storages and it really

1:10.0

seems like Southwest is dealing with more than just hiring issues. They're dealing with

1:15.3

staff issues. Yeah, I think you're right. And that, yeah, to your point, that is a big,

1:24.4

spade of cancellations. I mean, it was about 24% of their overall flight operations. I mean,

1:32.2

that's a very significant situation. You know, I mean, honestly, a little bit, a little

1:35.9

surprised that the stock wasn't under a little bit more pressure from this. But perhaps

1:42.2

investors are willing to take a bit of a bigger picture view here. I think it's so, it's

1:50.5

interesting to read about why people think this happened, right? I mean, there are, there's

1:56.8

the side of folks who say, well, that's what you get when you mandate vaccines. And then

2:00.4

other sides say, well, you know, it has something to do with the actual airline itself. And,

2:06.7

you know, it's a horrible jobs environment. And why are they having trouble staffing? I

...

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