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  "docId": "019dd923-622c-750b-8b9c-8f15f12c2ba7",
  "docSlug": "c81ff0738a2c",
  "documentTitle": "Southwest Airlines (LUV)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2024-06-10 00:00:00",
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  "pageNumber": 18,
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  "notes": "The slide uses a red bar for 'Today' to emphasize the current low valuation.",
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      "kind": "callout",
      "text": "The market value of Southwest's aircraft ($17B)(3) exceeds the TEV of Southwest, implying no value from operating the largest domestic airline beyond the value of the aircraft",
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      "kind": "callout",
      "text": "The market value of Southwest’s aircraft ($17B) exceeds the TEV of Southwest, implying no value from operating the largest domestic airline beyond the value of the aircraft",
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      "text": "Southwest Year-end Enterprise Value Since 2014",
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      "text": "Enterprise Value: 44%",
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      "kind": "paragraph",
      "text": "Southwest's enterprise value has declined 44% since 2019, reflecting a substantial diminution in investors' views of Southwest's future earnings power. In contrast, peer enterprise values are only 5% below 2019 levels on average(1)",
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      "kind": "quote",
      "text": "Presently, investors are not convinced that the company can return to its former glory based on how the stock has been trading of late.",
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      "kind": "quote",
      "text": "Presently, investors are not convinced that the company can return to its former glory based on how the stock has been trading of late. — Deutsche Bank, April 2024",
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      "kind": "source-note",
      "text": "Source: Company filings, peer company filings, Bloomberg as of 6/7/2024, Cirium as of 6/7/2024, equity research. Note: Emphasis is added to the quote. (1) Delta, American and United enterprise values are 4%, 1% and 11% below 2019 levels, respectively. (2) Enterprise value is adjusted for pension and capitalized aircraft leases. (3) Reflects Cirium's estimated market value of Southwest's fleet.",
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      "kind": "title",
      "text": "Extraordinary Decline in Southwest's Value",
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