NEW YORK (TheStreet) -- Shares of Southwest Airlines (LUV) are down by 3.04% to $36.04 in mid-day trading on Monday, as the airline sector tumbles on comments made by the CEO of American Airlines (AAL) and as some within the sector receive analyst downgrades.
While speaking at the International Air Transportation's annual general meeting in Miami, American Airlines CEO Doug Parker told Reuters that he is concerned about growing airline capacity depressing profits across the industry.
"The real question is, is this a one-time catch up for fuel prices being lower or is this airlines behaving like airlines used to and just increasing capacity because times are good," Parker told Reuters when asked about investor concerns regarding capacity increases exceeding a growth in demand.
Additionally, a few of Southwest's rivals received ratings downgrades at Raymond James this morning.
Other airline stocks falling today include Virgin America (VA), down by 3.82% to $28.20, Spirit Airlines (SAVE), lower by 2.66% to $63.63, and JetBlue Airways (JBLU), sliding by 7.12% to $19.03 this afternoon.
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: