As seen from its latest quarterly earnings release, things have picked back up substantially for Southwest Airlines. However, it may have only reported positive earnings thanks to proceeds from the U.S. Federal Government’s airline relief program.
Of course, the latest variant could potentially get in the way of a full recovery happening. That’s why investors have pushed down this and other airline stocks since June. Since climbing up to above $60 per share, LUV stock today changes hands for around $50 per share. Still up big from its pandemic lows, is there enough possible upside from a continued recovery to make up for the risk of a continued selloff if the Delta variant situation worsens?
Yes. Challenges notwithstanding, Southwest is looking to pursue growth, coming out of aggressively, and after, the pandemic. This includes adding new destinations to its network, as well as increasing its connections with existing goals. With its long-standing operational advantages, this airline remains one of the best ones out there to own for the long haul.