Southwest Lowers Revenue Metric Forecast
09 December 2015 - 3:00AM
Dow Jones News
Southwest Airlines Co. said Tuesday that a key revenue metric
could fall in the current quarter, sending shares lower in early
trading.
The airline estimates its fourth-quarter 2015 operating revenue
per available seat mile to be flat to down 1% compared with the
same period last year. Southwest had given previous guidance for
operating revenue per available seat mile to rise 1%.
Shares, which have risen about 11% this year, declined 4.7% to
$47.16 in early trading.
Still, the airline said its passenger traffic improved 13.9% in
November from the same month a year ago. Capacity increased 9.7%,
while load factor—the percentage of seats filled—rose to a record
for the month at 83.2% compared with 80.1% a year earlier.
Dallas-based Southwest grew into the fourth-largest domestic
carrier over the past four decades by flying exclusively within the
continental U.S. But with dwindling growth opportunities at home,
it has been expanding abroad.
Shares of other airlines also declined in early trading. Delta
Air Lines Inc. fell 1.4%, United Continental Holdings Inc. declined
1.3% and American Air Lines Group Inc. fell 2.2%.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
December 08, 2015 10:45 ET (15:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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