Southwest Airlines: Don't Read Too Much Into Capacity Growth
Southwest Airlines reported astonishing capacity growth for February.
The fears about capacity growth are overblown.
The stock is a buy as it trades favorably compared to other stocks in the transport sector.
The market sold off most of the airline stocks midweek due to the traffic reports for February showing astonishing capacity growth. The combination of capacity growth and lower revenue metrics continues to scare the market that the airline industry of the past will return.