Southwest Airlines Co. Ratings Lowered To 'BBB-' From 'BBB' On Acquisition Of AirTran Airways Inc.; Outlook Is Stable May 11
- Language: English
- Published: May 2011
Extremely strong competitive position in markets served; Relatively low operating costs; and Consistent annual profitability, even during industry downturns Participation in the high-risk, cyclical airline industry; Exposure to high fuel prices (despite the significant levels of fuel hedging) A somewhat weaker financial profile after the acquisition of AirTran Holdings Inc. (although it remains the strongest among U.S. airlines) Standard & Poor's Ratings Services' ratings on Dallas-based Southwest Airlines Co. reflect its strong competitive position in the markets it serves, relatively low operating costs, and consistent annual profitability, even during industry downturns. These factors mitigate, to a large extent, the high-risk and cyclical nature of the airline industry and exposure to high fuel prices (despite the significant levels of fuel hedging)....
Companies mentioned in this report are: Southwest Airlines Co.,AirTran Holdings Inc.
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Southwest Airlines Co.,AirTran Holdings Inc.