Originally Posted by Sparrowhwk

At the risk of spoiling a good headline with details, the following excerpts from the article ...

"Southwest (LUV) is seen underperforming peers due to the planned investments in technology upgrades, entrance into global distribution systems and expansion to higher-cost airports."

- Aren't these the areas that folks on this forum have complained about before - so isn't is appropriate that SWA is investing in these areas (particularly technology)?

"We continue to view Southwest as one of the highest quality companies in our coverage and believe that these investments will ultimately improve the company’s margin profile in the long run."

- So in the short term, SWA is investing to improve itself, and those costs will result in lower profits or some loss. But in the longer term, the investments should pay off for better returns.
Isn't this how business is done?

Of course a weaker balance sheet does provide fodder for the inevitable "no money for pay increases" part of the contract negotiations - but what's new.