Why Southwest Airlines (LUV) Shares Are Rising

Southwest Airlines Co LUV shares are trading higher by 4% to $31.35 during Tuesday’s session. Shares of several airline stocks are trading higher in sympathy with United Airlines Holdings Inc after the company reported better-than-expected fourth-quarter financial results.

Additionally, Southwest Airlines pilots, represented by the Southwest Airlines Pilots Association, have reached a new labor deal with the airline. The agreement entails a pay increase of around 50% for the pilots over the next five years.

The negotiations, which included discussions on pay, retirement benefits, disability insurance, and scheduling processes, have been ongoing since the expiration of the previous contract in September 2020.

What Happened With UAL?

United Airlines reported earnings of $2 per share, exceeding the consensus estimate of $1.70. The quarterly sales stood at $13.60 billion, slightly surpassing the analyst consensus of $13.54 billion. This marks a 9.7% increase compared to the same period last year when sales were $12.40 billion.

“Despite unpredictable headwinds, we delivered on our ambitious EPS target that few thought possible – and set new operational records for our customers,” said Scott Kirby, CEO of United Airlines…Read More

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According to data from Benzinga Pro, LUV has a 52-week high of $39.53 and a 52-week low of $21.91.