LUV Stock Drops Amid Ongoing Cancellations

LUV Stock

In premarket trading on Wednesday, Southwest Airlines (LUV stock) (NYSE:LUV) fell as the airline’s cancellations continued to number in the thousands.

In addition to roughly 2700 cancellations on Tuesday and thousands more on Monday, FlightAware reports that Southwest canceled over 2500 flights on Wednesday. More than 2,300 cancellations scheduled for Thursday have also been accounted for by the data source. In the three-day period, the percentage of flights that were canceled ranged from 58% to 64% per day.

Significant competitors Delta Air Lines (NYSE:DAL), United Airlines (NASDAQ:UAL), and American Airlines (NASDAQ:AAL) all have relatively low cancellation rates compared to the outsized cancellation rate. Therefore, the regulatory oversight of Southwest has increased.

On Tuesday night, Transportation Secretary Pete Buttigieg stated that “Southwest travelers have suffered intolerable disruptions and customer service conditions.” “I have made it very clear to their management that our department will hold Southwest responsible for setting things right with its clients and staff,” said the author.

In his Wednesday comments to Good Morning America, Buttigieg again rejected the justifications connected to the weather. The possibility that they could claim that this is a weather-related issue has passed, he said, according to the program.

Luv Stock Outlook on Christmas Holiday

The Christmas holiday weekend saw disruptions in travel from coast to coast as most of the nation was blanketed in snow, wind, and extremely low temperatures. With planes freezing over at night and many airports running out of room for de-icing, this interfered with many travelers’ plans as well as the operations of airlines. However, no one seems to have been affected as badly as Southwest Airlines (NYSE:LUV), with customers reporting lengthy wait times to change flights and collect bags as well as unanswered phone calls to customer support. The premarket price of $34.90 for LUV is down 3.3%.

Southwest (NYSE:LUV) undertook a significant expansion into new cities during the epidemic, but this left it open to disruptions when things went wrong.

Luv Stock Increases Due To Solid Profits And A Positive Outlook

Featured Image: Pexels @ Jeffry Surianto

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