09 October 2008

S&P downgrades Southwest to BBB+

Ouch,

Southwest the last US airline with an A anything rating just got downgraded by S&P.

Clearly the ratings agencies are not taking any chances and have themselves turned bearish on everyone. Southwest just happened to be caught in the stampede.

Nothing wrong with WN - just the same as everyone else. ... or is there?

I have to say I am a little concerned at their load factors for September. With everyone cutting capacity WN needs to be either more aggressive in launching new markets or cutting. it has to do one or the other or both. Doing neither is not an option.

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