Regine- I sympathize. I bought chunks of LUV over the last three years at $31, $23, $18, & $16. It is one of my core holdings and I guess I am guilty of falling in love with the stock. The reason being is that I have seen what it can do in a favorable environment, plus I fly them at least once a week. As far a management, and the ability to instill customer service in their employees, Southwest is second to none. I fly alot, and sometimes I have to fly other airlines because of schedules that SWA can't meet, and believe me, there is no one in the sky who treats their customers better than Southwest. Even when times are tough, SWA still makes money when the others carriers are bleeding red ink. I think their customer service attitude has alot to do with that, plus management is a real stickler for keeping cost down.
Right now, they are getting hurt by the 25% increase in fuel prices, plus some new $10 tax that just got reimposed which they will have to pass along to their customers. Keep an eye on their earnings, and their load factor. For comparisons sake, it is usually much higher than the other carriers, and there is usually a small bounce in the stock price when these figures are released. Good Luck DL |
