The Dallas-based airline is concentrating on customer service and value. A shift in attitutes and spending over the past five years prompted Southwest to recently revamp their customer service. He says it's been critical to the company's success.
Southwest has partnered with Mexican airline Volaris, offering customers travel to several cities in Mexico. LUV hopes to expand travel to international destinations, but will concentrate on Volaris before making other partnerships, Kelly says. But developing domestic travel is their biggest goal.
Host Melissa Lee asked Kelly about reports indicating that Warren Buffett is interested in purchasing the airline, but he says he's hasn't talked to him.
What's the Trade?
Southwest has benefited from their lack of exposure to Europe, says Pete Najarian of optionMONSTER.com. He thinks the legacy carriers have more upside than discount carriers, like Southwest. Najarian says the legacy carriers will outperform because they "run a good ship," but as far as stock performance, he's not sure how they'll catch up to LUV.
SECTOR OF THE DAY: MEDIA
Cablevision is buying Bresnan Communications for $1.37 billion, according to published reports Monday.
This is a good move for Cablevision, RBC Capital Markets analyst David Brink tells the Fast Money desk. The market is saying it likes the deal because it's tax efficient and a good use of capital.
Bresnan offers services in Colorado, Montana, Wyoming and Utah.
Brink added that he really likes media and entertainment right now, especially Viacom .
CALL THE CLOSE
Brian Kelly of Kanundrum Capital says sell into the rally.
Tim Seymour of EmergingMoney.com says we will not break through 200-day moving average. He says there are not enough people in the market for him to feel confident that the gains are here to stay.
Steve Grasso of Stuart Frankel says that unless we close above the 1108, he is still a seller of the market.
Pete Najarian of optionMONSTER.com thinks you should sell if it gets above 1100.