Southwest Airlines Co (NYSE:LUV) Differentiates with Market Share

June 7, 2016

Paula Chastain, Senior Portfolio Manager at Hancock Bank, says the firm has held Southwest Airlines Co (NYSE:LUV) for some time due to its consistent returns and market share.

[Southwest Airlines is] a great domestic carrier and does well within its space. Again, they’ve had very consistent returns; although within the recent months or so, airlines have had some difficulties. We feel, long term, it’s still a good holding, and again, it scores very well in our model.

They have a very good niche in their market. Good domestic carrier. Just their philosophy overall I think and their pricing methods, no unbundling of pricing for add-ons seems to be doing very well for them compared to some of the other carriers. So I think that they have a good space within that industry.

They do seem to know their market very well. They’ve had some recent losses because of fuel hedging, which benefited them at one point, but it’s really not been a benefit to them more recently. But they do seem to know their market and seem to be very consistent in their growth.

Paula Chastain copy
Paula Chastain