Southwest's Near Term Growth Drivers: Expiry Of Wright Amendment Restrictions & Slot Wins

In the first half of 2014, Southwest Airlines has posted impressive growth in its profits on strong demand for air travel in the domestic U.S. market. Even though the low-cost carrier has not raised its flying capacity this year, its profits have risen sharply on fare hikes and higher passenger traffic. We figure that Southwest will likely maintain its growth momentum through early 2015, on gains from specific growth opportunities. Within the next month, restrictions imposed on Southwest’s cap...