w s asked in Business & FinanceInvesting · 1 decade ago

why stock prices of southwest airlines gone down despite market going up?

Why has the south west airlines stock price fallen the last 6 months despite the fact the company has shown it had made profits the last 6 months?

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  • 1 decade ago
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    Investors are expecting the high gas prices to take a big chunk out the southwest's profits.

  • 1 decade ago

    GAS HEDGING. Southwest Airlines was extremely smart in its early going. They hedged gas at a premium BEFORE gas prices became out of control. They hedged cheap gas as far out as 2012.

    When all the other airlines were losing money during the rough patch after 9/11 Southwest was one of the few carriers still posting profits.

    With that being said... the price of the stock is going down and will continue to go down because they are no longer benefiting from hedged fuel prices.

  • 1 decade ago

    In the short term the market is fairly unpredictable. But are the profits less than what investors were thinking? Also, other investments might be more attractive. The firm down the street might be making a ton or is expected to make a ton in the future. Stock prices for companies cannot be looked at in a vacuum. External market factors and players need to be considered.

  • 1 decade ago

    This is because the future of the airlines industry is unknown,and also the price of gas is on the rise.

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  • Anonymous
    1 decade ago

    SkyBus.

    DayJet.

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