Why Southwest Airlines Stock Climbed by More Than 5% Today
A new pricing regime was the wind lifting Southwest Airlines (NYSE: LUV) stock on Tuesday. On the news that the company is falling in line with a current standard in the airline industry, investors lapped up its shares, to the point where they closed the trading day more than 5% higher in price. That compared most favorably to the benchmark S&P 500's (SNPINDEX: ^GSPC) barely over 2% gain.Southwest announced Tuesday it will start levying on its passengers a $35 fee for one checked bag, and $45 for a second. Customers that hold Business Select or Choice Extra premium tickets can check two bags for free, while its A-List and Rapid Rewards credit card holders will be allowed to check one free of charge. Image source: Getty Images.Continue reading
A new pricing regime was the wind lifting Southwest Airlines (NYSE: LUV) stock on Tuesday. On the news that the company is falling in line with a current standard in the airline industry, investors lapped up its shares, to the point where they closed the trading day more than 5% higher in price. That compared most favorably to the benchmark S&P 500's (SNPINDEX: ^GSPC) barely over 2% gain.
Southwest announced Tuesday it will start levying on its passengers a $35 fee for one checked bag, and $45 for a second. Customers that hold Business Select or Choice Extra premium tickets can check two bags for free, while its A-List and Rapid Rewards credit card holders will be allowed to check one free of charge.
Image source: Getty Images.
