8-Sep-2016 6:35 AM

Southwest Airlines expects 3Q2016 revenues to decline, sees 5% to 6% capacity growth for 2016

Southwest Airlines stated (07-Sep-2016) it continues to expect 3Q2016 operating revenue per available seat mile (RASM) to decline 3.5% to 4.5% year-over-year, attributing approximately 0.5 point of the decline to its Jul-2016 technology outage. Southwest estimates 3Q2016 unit costs will increase 3.0 to 4.0% year-over-year, including the impact from the technology outage. The carrier also projects 3Q2016 economic fuel costs will be approximately USD2.05 per gallon, compared to USD2.20 per gallon in 3Q2015. Southwest estimates FY2016 available seat miles (capacity) will increase 5% to 6% year-over-year, with FY2017 capacity expected to increase less than 4.0 %, year-over-year.  [more - original PR]

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