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Barron's Streetwise

Southwest Airlines Turnaround Comes With Baggage

Barron's Streetwise

Barron's

Business

4.81.5K Ratings

🗓️ 4 April 2025

⏱️ 33 minutes

🧾️ Download transcript

Summary

The low-cost carrier is adding fees and up-charges. Is it trying to mimic Spirit or Delta? And is the industry headed into a downturn? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hello Blue Skies. Hello moving onwards and upwards. Hello taking control of your money. Say hello to tax-free investing. Open a Stocks and shares ICER and act by the 5th of April to get 100 to 3,000 pounds cash back. Cargreaves lands down. Hello Life. Register and add or transfer £10,000 plus.

0:23.6

You may get back less than you invest and tax benefits vary.

0:26.6

For terms and conditions, see hl.co.

0:28.6

UK 4 slash ISA.

0:29.6

Historically, Southwest, when they would go into a downturn, given their balance sheet, would use the downturn as an opportunity

0:39.4

to take advantage of the market. They normally were going on the offense when everyone else

0:43.3

was receding into hubs or going into bankruptcy. This downturn was different. Hello and

0:48.9

welcome to the Barron Streetwise podcast. I'm Jack Howe. And the voice you just heard is Connor

0:53.6

Cunningham from

0:54.8

Melius Research. He's an airline analyst who recently upgraded Southwest from Sell all the way

1:01.7

to hold. That's progress. The stock has been outperforming over the past two months. Call it a turnaround

1:09.5

amid an identity crisis that now might be running up against an industry downturn.

1:15.8

We'll talk about it.

1:22.3

Listening in is our audio producer Alexis Moore.

1:25.1

Hi, Lexus.

1:25.9

Hi, Jack.

1:26.6

What did you mean when you told me that you come

1:28.5

from an airline family? I mean that I basically grew up in an airplane. My mom worked for an airline.

1:35.1

Two of my uncles did. So we just stayed in the sky. It sounds like free flights, right?

1:40.4

Free flights. Yeah. Stand by. Did your mother work on a plane or did she work in an office?

1:45.6

She worked in an office. Oh, so I was going to ask you what's the craziest thing she ever saw happen on a plane.

1:51.6

Flight attendants have great stories about that sort of thing. It's like the first thing I always like to ask a flight attendant. But I guess you don't have those stories, right?

...

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