Reported 9 months ago
Southwest Airlines has reduced its second-quarter forecast for revenue per available seat miles (RASM) as domestic demand remains unpredictable. The Dallas-based carrier's shares dropped by about 4% as it struggles to anticipate shifts in demand patterns, leading to overcapacity risks on major routes and impacting pricing power. Unlike other major airlines, Southwest's revised forecast contradicts the optimism surrounding summer travel due to strong international demand. The company is also facing challenges due to Boeing's safety crisis, which has delayed new jet deliveries and forced adjustments in growth plans. Despite these setbacks, Southwest still expects record operating revenue for the quarter.
Source: YAHOO