Monday, November 4, 2019

A Southwest Acquisition?

Southwest, which is known for its all 737 fleet, reportedly lost out on $175 million in income during the second quarter due to the continued grounding of the 737 Max. So how is Southwest to grow? There is speculation that the way to growth may be the acquisition of another airline such as Spirit or JetBlue. This would allow Southwest to rapidly increase fleet size and diversification as other airlines' fleets include Airbus jets. So what does one analyst think about this possibility? A Stifel analyst downgraded Southwest stock on speculation of an acquisition, an indication that any possible acquisition will be over-priced.