Southwest and American Airlines investors brace for the worst ahead of Q2 earnings

Category: Business

Southwest and American Airlines are facing significant challenges as they prepare to announce their second quarter earnings. Southwest is under investigation by the FAA for safety incidents, while American is reversing a failed sales strategy. Both airlines have seen their stock prices plummet and are struggling to meet revenue expectations, with Southwest's earnings per share projected to drop significantly compared to last year. Activist pressure is mounting on Southwest to change its business model, which may alienate loyal customers. Investors are looking for clarity on American's new sales strategy after the abandonment of its previous approach.

Keywords: Southwest Airlines, American Airlines, FAA investigation

Source: Yahoo Finance

Update At: 7/25/2024

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