Southwest Airlines posted a profit in the fourth quarter as bookings during the holidays were better than expected on the back of travel demand that remained strong and is expected to remain so.
Southwest Airlines posted a profit in the fourth quarter as bookings during the holidays were better than expected on the back of travel demand that remained strong and is expected to remain so.
Southwest Airlines on Thursday raised its forecast for fourth-quarter revenue per available seat miles, benefiting from improved pricing and a rebound in domestic travel demand.
The airline said it expects unit revenue to rise as much as 3% in the third quarter over the same period last year, up from a previous forecast of a decline of as much as 2%, helped in part by rebooking passengers who were originally flying airlines affected by July’s CrowdStrike outage.
Southwest Airlines on Thursday forecast a potential drop in unit revenue for the third quarter as an oversupplied U.S. market has forced airlines to discount tickets during what is usually the most lucrative period of the year.
Southwest Airlines shares fell roughly 4% in premarket trading Wednesday after the carrier cut its second-quarter revenue forecast, citing changing booking patterns.
Southwest Airlines was rising Monday after activist investor Elliott Investment Management built a stake in the company, according to a report. This could be a trigger for intensified cost cutting but the company’s reliance on Boeing won’t be fixed so easily.
Southwest Airlines slashed its estimates for new aircraft deliveries from Boeing in 2024 for the third time on Thursday and said it plans to undertake cost-cutting measures to ease the resultant blow.
Southwest said it would reevaluate its 2024 financial forecast because of Boeing’s delivery delays this year.
The U.S. Department Transportation on Monday said it fined Southwest Airlines $140 million for violating consumer protection laws during last year’s holiday meltdown that stranded millions of customers following severe winter weather.
Southwest Airlines hiked its fourth-quarter revenue guidance amid strong holiday travel demand, but that wasn’t enough to keep the stock’s recent rally going.
Southwest said it plans to slow its capacity growth next year.
Shares of Southwest Airlines Co. LUV, -1.50% dropped 4.2% toward a three-month low in premarket trading Wednesday, after the air carrier said it booked record revenue for the Labor Day weekend, but said close-in leisure bookings in August were on the lower-end of expectations.
Southwest Airlines stock tumbled after the low-cost carrier said it expected revenue per available seat mile to fall in the third quarter.