The Boeing Company’s (BA) production challenges have echoed across the airline industry, posing challenges for carriers to satisfy surging travel demand and potentially driving ticket prices even higher. That said, shares of Southwest Airlines Co. (LUV), one of the world's largest operators of the Boeing fleet, have taken a significant hit.
Investor sentiment soured toward the stock as Boeing's quality control issues led to delays in airplane deliveries, prompting Southwest to lower its expectations, with anticipated Boeing 737-8 deliveries for 2024 reduced from 58 to 46. Amid the uncertainty, the stock recently received a “Hold” rating from HSBC. That’s in line with the Wall Street consensus; out of 20 analysts tracking LUV, 45% rate the stock a “Hold.”
