Is Southwest Airlines A Good Investment After Its Epic Holiday Meltdown?


  • Southwest Airlines had massive operational failures over the holidays, canceling nearly 17,000 flights in 10 days.
  • Inclement weather and the failure of outdated computer systems led to widespread consumer outrage, and cost the company hundreds of millions of dollars.
  • The stock tanked and now has rebounded due to traders betting on a bottom.
  • LUV stock is a great case study to illustrate some points on economics and behavioral finance.

Southwest Airlines" Mass Cancellations Continue To Strand Travellers Nationwide

Michael Ciaglo

If you want to be a millionaire, start with a billion dollars and launch a new airline. – Richard Branson

Southwest Airlines (NYSE:LUV) had a terrible December. Bad weather across the US combined with failures of outdated IT

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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