SOUTHWEST SEES STOCKS DROP
Southwest recorded record profit in the second quarter, showing a net gain of $820 million, a 35% increase from their profit a year earlier. However, this massive gain was not enough to convince analysts of Southwest’s potential for success. Those on Wall Street expected better. As a result, Southwest’s shares fell dramatically. Furthermore, fares have been falling. Passengers pay 3.5% less to fly from April through June. However, fortunately for the airline, the fare decrease was counteracted by a 6% increase in passenger weight. More passengers were flying with Southwest than before. This rise puts Southwest in a good position to battle a fare war with its competitors, United Continental and Delta Airlines. Both have also experienced fare decreases of 7% and 5%, respectively.