Southwest Airlines Trading Volume Surges 72.97% to $560 Million, Stock Price Drops 9.42%

On April 3, 2025, Southwest Airlines (LUV) experienced a significant increase in trading volume, with a total of $560 million in shares traded, marking a 72.97% rise from the previous day. This surge placed Southwest Airlines at the 246th position in terms of trading volume for the day. However, despite the high trading volume, the stock price of Southwest Airlines declined by 9.42%.

Fitch Ratings has revised its outlook for Southwest Airlines to negative, while affirming the company's long-term Issuer Default Rating at "BBB+". This change reflects concerns over potential shifts in Southwest's capital allocation and financial policies, which could impact its competitive position relative to other network carriers. The introduction of bag fees and the expiration of flight credits are among the changes that could erode Southwest's competitive strengths.

Southwest Airlines has been under pressure to improve its margins, particularly since activist hedge fund Elliott Investment Management took a stake in the carrier and later won a settlement. The airline's recent policy changes have drawn criticism on social media, although the extent of market share loss remains uncertain. Southwest has not commented on Fitch's new outlook.