NEW YORK (TheStreet) -- Shares of Southwest Airlines Co. (LUV) are higher by 0.54% to $39.33 in pre-market trading on Tuesday, after the company announced it expects to boost its capacity by 6% in 2015, the company's CFO said during an investor-day briefing on Monday, Reuters reports.
Close to half of the growth in capacity will come from the Dallas Love Field airport. Flying at this airport had been partially restricted, until October 2014, when the 1979 "Wright Amendment," statute expired, Reuters added.
Under then House Speaker Jim Wright, the statute was intended to restrict the traffic out of Love Field and direct growth toward the struggling Dallas-Forth Worth International Airport, the Los Angeles Times reported.
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The company said that it is also expecting its passenger revenue per available seat mile to increase by 1% to 2% for the current quarter.
Separately, TheStreet Ratings team rates SOUTHWEST AIRLINES as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUTHWEST AIRLINES (LUV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."