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Jim Cramer on Southwest Airlines (LUV): Under Pressure, But Not Oversupplying

Eli GrantMonday, Dec 16, 2024 12:47 am ET
2min read


Jim Cramer, the renowned financial analyst and host of CNBC's "Mad Money," has recently expressed concerns about Southwest Airlines (LUV) and its stock performance. In a recent interview, Cramer stated that the airline is "under pressure" and that he is "not oversupplying" it. This article explores the reasons behind Cramer's sentiments and examines the current state of Southwest Airlines and the broader aviation industry.

Southwest Airlines has been facing headwinds in recent months, with rising fuel costs and labor disputes taking a toll on its financial performance. The airline has also been grappling with a pilot shortage, which has led to flight cancellations and disruptions. These challenges have contributed to a decline in Southwest's stock price, with shares down approximately 15% year-to-date.

However, Cramer is not entirely bearish on Southwest Airlines. He believes that the airline has a strong brand and a solid balance sheet, which will help it weather the current storm. He also points out that Southwest has a history of navigating through difficult periods and emerging stronger. Cramer suggests that investors should not panic and sell their shares, but rather wait for a more opportune time to buy.

The broader aviation industry is also facing challenges, with rising fuel costs and geopolitical tensions impacting airlines worldwide. However, the industry is expected to rebound in the long run, driven by increasing demand for air travel and technological advancements. This bodes well for Southwest Airlines, which has a strong track record of growth and innovation.


Southwest Airlines' stock price has been volatile in recent months, with shares trading in a range of $35 to $55 over the past year. The stock is currently trading at around $40, down from its 52-week high of $55.

LUV Trend

In conclusion, Jim Cramer's sentiments on Southwest Airlines reflect the challenges the airline is facing, but also its potential for long-term growth. Investors should remain cautious in the short term, but consider the airline's strong brand and balance sheet when making investment decisions. The broader aviation industry is expected to rebound, which should benefit Southwest Airlines in the long run.
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Fit-Possibility-1045
12/16
Holding $LUV long-term, patience is key here.
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RamBamBooey
12/16
Cramer's got a point, but I'm holding my $LUV. Strong brand and balance sheet make it a long-term play. 🚀
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qw1ns
12/16
Fuel costs are killing airlines. But tech advancements might save the day. Long-term hold could be sweet.
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Lurking_In_A_Cape
12/16
Cramer's right, Southwest's balance sheet is solid
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Gentleman1217
12/16
Southwest's brand is solid, but labor disputes are a real headache. Watching from the sidelines for now.
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DrSilentNut
12/16
Fuel costs killing $LUV, but strong brand prevails
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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