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Analyst Likes Southwest Airlines Earnings Print

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Analyst Likes Southwest Airlines Earnings Print

Seth Kaplan of Kaplan Research spoke on CNBC's "Squawk Box" about Southwest Airlines Co's (NYSE: LUV) second-quarter earnings results. He said the numbers were good. Margin declined by less than half of a point, despite the operational mess caused by the grounding of Boeing 737 Max.

Kaplan thinks Southwest has more opportunities than the other airlines. The company is still not doing things the other airlines have already done, like charging for bags and other things.

See Also: Southwest Airlines Falls After Q2 Earnings

Due to forced capacity cuts and poor financial results, Southwest decided to cut flights from Newark airport, explained Kaplan. He thinks revenue from Boeing 737 Max could start at the end of the year. Kaplan thinks Southwest is going to continue to buy Boeing's planes and instead of compensation for problems with 737 Max, he expects the airline to receive discounts for future purchases. He sees additional pilot training as a potential problem.

Southwest's stock traded around $54.78 per share Thursday morning.

Posted-In: CNBC Kaplan Research Seth KaplanMedia

 

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