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Southwest (LUV) Falls 14.8% in Tuesday's Trading: Here's Why
Southwest AirlinesSouthwest Airlines(US:LUV) Zacks Investment Research·2024-03-14 01:56

Shares of Southwest Airlines Co. (LUV) plunged 14.8% on Mar 12, closing the trading session at 28.76.ThedownsidewasowingtotheunfavorablefuelpriceguidanceprovidedbySouthwestforthefirstquarteranditsplanstoreduce2024capacityduetoproductiondelaysatBoeing(BA).Notably,LUVhasraiseditsfirst−quarter2024economicfuelcostspergallonguidancetotherangeof28.76. The downside was owing to the unfavorable fuel price guidance provided by Southwest for the first quarter and its plans to reduce 2024 capacity due to production delays at Boeing (BA) .Notably, LUV has raised its first-quarter 2024 economic fuel costs per gallon guidance to the range of 2.95-3(priorview:3 (prior view: 2.70 to $2.80).High fuel costs due to an escalation in oil price are a bane and are likely to hurt ...