Southwest's big plane order; laggng stock price (?)
Hello again ... back for a few more postings of airline news. Southwest Airlines is all over the news today, with a report that it has placed the largest firm order Boeing has ever received, for a new generation of the venerable 737 that is the only model of plane SW has ever flown.
Another look at Southwest, from an investor's viewpoint, notes that the airline's stock price is likely to lag other majors in part because it doesn't have as much revenue per passenger mile flown. Why? You know why, because it doesn't charge bag fees or change fees -- i.e. it suffers on the bottom line and those who own its stock suffer because it gives its customers a break on the cost of flying. What a novel idea! Investing in airline stocks, as one analyst used to say, can be hazardous to your wealth anyway, so maybe you want to stay away from them.