Southwest Airlines shares close higher on Tuesday, company releases preliminary traffic report for April

May 9, 2018 9:52 am

Southwest Airlines Company (LUV) released on Tuesday its preliminary traffic report for April, according to which revenue passenger miles dropped 0.3% year-on-year to 11,202,109 during the month. In year-to-date terms, revenue passenger miles rose 2.6% to 41,641,601, the airline said.

Shares of Southwest Airlines closed higher for the fifth time in the past eleven trading sessions on Tuesday. The stock went up 0.63% ($0.33) to $52.33, after touching an intraday high at $53.06, or a price level not seen since May 4th ($53.10).

In the week ended on May 6th the shares of the transportation company lost 1.40% of their market value compared to a week ago, which marked a fifth consecutive period of decrease.

The stock has pared its loss to 0.95% so far during the current month, following a 7.77% slump in April. The latter has been a fourth consecutive monthly loss and also the largest one since July 2017.

For the entire past year, the shares of the NYSE-listed carrier gained 31.32%, following another 15.75% surge in 2016.

The company’s capacity increased 1.5% to 13,570,674 available seat miles in April compared to the same month a year earlier, while its year-to-date capacity was 1.7% higher.

Load factor, which reflects how efficiently the airline fills seats and generates fare revenue, went down 150 basis points to 82.5% last month compared to April 2017, while rising 80 basis points year-to-date to 81.8%.

The number of trips flown increased 1.6% year-on-year to 116,365 in April and 1.4% year-to-date to 442,581.

Meanwhile, the airline’s average length of haul decreased 2.9% in April from a year ago.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Southwest Airlines’ stock price, have a median target of $69.00, with a high estimate of $85.00 and a low estimate of $61.00. The median estimate is a 31.86% surge compared to the closing price of $52.33 on May 8th.

The same media also reported that 13 out of 21 surveyed investment analysts had rated Southwest Airlines’ stock as “Buy”, while 4 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for Southwest Airlines’ shares are presented as follows:

R1 – $52.43
R2 – $52.53
R3 (Range Resistance – Sell) – $52.63
R4 (Long Breakout) – $52.93
R5 (Breakout Target 1) – $53.28
R6 (Breakout Target 2) – $53.43

S1 – $52.23
S2 – $52.13
S3 (Range Support – Buy) – $52.03
S4 (Short Breakout) – $51.73
S5 (Breakout Target 1) – $51.38
S6 (Breakout Target 2) – $51.23

By using the traditional method of calculation, the weekly levels of importance for Southwest Airlines Company (LUV) are presented as follows:

Central Pivot Point – $52.71
R1 – $53.85
R2 – $54.91
R3 – $56.05
R4 – $57.18

S1 – $51.65
S2 – $50.51
S3 – $49.45
S4 – $48.38

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