Investors have grown increasingly frustrated with the airline industry’s recent performance. The latest earnings reports from Southwest Airlines and American Airlines have further fueled this sentiment, causing their stocks to plummet. As a result, investors are questioning whether the airlines’ rally is truly sustainable.
Southwest Airlines, like its peers, reported slower-than-expected revenue growth in its second-quarter earnings report. This underperformance has led many analysts to downgrade their outlook for the industry’s future prospects. American Airlines also faced similar criticism, with some expressing concerns about the airline’s pricing power and ability to compete in a crowded market.
The disappointing results have prompted investors to reevaluate their bets on these two major airlines. As a result, their stocks are experiencing a significant decline. The question now is whether this correction will mark a turning point for the industry or simply a minor setback.
Source: https://www.barrons.com/articles/southwest-american-airlines-earnings-stock-price-178d86ec