Stock Pulse
Southwest Airlines (LUV) is facing a mixed outlook. While the company's stock saw a recent jump due to paused import taxes [2], it is still expected to post a quarterly loss and analysts have lowered earnings estimates [2]. Job cuts announced earlier this year [1] aim to improve efficiency, but pose a risk to customer service and operational capacity. Positive notes include a "Buy" rating from Zacks [6] due to strong projected long-term earnings growth and positive past performance [6], and a potential positive earnings surprise on April 24th [7]. However, a risky baggage fee policy change [8], [9] and Jim Cramer's sell recommendation [10] introduce downside risks. The broader market volatility affecting the airline industry [3], [5], [10] and Southwest’s ended fuel hedging program [4] further complicate the picture.