Southwest Airlines Stock Takes a Hit After Wave of Cancellations

Southwest Airlines Stock Takes a Hit After Wave of Cancellations
A Southwest Airlines ground crew member organizes unclaimed luggage at the Southwest Airlines luggage area, at Los Angeles International Airport in Los Angeles, Calif., on Dec. 28, 2022. Robyn Beck/AFP/Getty Images
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Shares of Southwest (LUV) sank more than 10 percent this week after the airline canceled thousands of flights during the busy Christmas travel week, prompting scrutiny from federal officials. Despite a more than 3 percent rebound in early Thursday trade, some investors may avoid the company for some time due to its now-tarnished reputation.

Southwest has canceled more than 15,000 flights in the past week, with almost 2,400 more cancellations scheduled for Thursday, according to data by FlightAware.