In the fourth quarter of 2009, Southwest Airlines Co. (LUV) spent $180,000 to lobby, higher than the $40,000 spent in the fourth quarter 2008. Its lobbying expenditure for 2009 was $690,000.
The airline is lobbying on issues relating to the use of personal wireless devices and laptop computers during flights. In addition to this, the company lobbied on aviation security, infrastructure, climate change, taxes and other issues. In the fourth quarter last year, the airline spent to lobby Congress on using biometric technology for airport security.
Southwest Airlines advocates that personal wireless communication devices should be prohibited from use. In an incident last year, pilots on Northwest Airlines (NWA) got distracted from working on their computers which caused the flight to miss its destination.
Estimate Revisions
Over the last 30 days, one of the 12 analysts covering the stock has lowered the estimate for the first quarter of 2010 and one has revised it upward. Currently, the Zacks Consensus Estimate for the first quarter is operating earnings of two cents per share, which would be up by 161.11% from the year-ago quarter.
The equal number of estimate revisions in either direction for the first quarter indicates no clear directional pressure on the performance of the stock in the near term.
With respect to earnings surprises, the stock fluctuated over the last four quarters, with two positive surprises. However, the average remained negative at 95.2%. This implies that Southwest has fallen short of the Zacks Consensus Estimate by 95.2% over that period.
The upside potential of the estimate for the first quarter, essentially a proxy for future earnings surprises, currently stands at 50.0% for LUV.
Other airlines which lobbied in the fourth quarter of 2009 include AMR Corporation (AMR), which spent $1.58 million on legislation to limit tarmac delays and other issues. UAL Corporation (UAUA) spent $600,000 in the fourth quarter lobbying on proposed rules for dealing with stranded passengers and prohibiting the use of computers and other electronic instruments in the cockpit.
Read the full analyst report on “LUV”
Read the full analyst report on “NWA”
Read the full analyst report on “AMR”
Read the full analyst report on “UAUA”
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