Southwest Airlines expects USD100m impact from natural disasters during 3Q2017
Southwest Airlines revised (28-Sep-2017) financial and operational trends to reflect the impact of "devastating hurricanes and earthquakes" during 3Q2017. The carrier cancelled approximately 5000 services through 27-Sep-2017 as a result, and now expects 3Q2017 available seat miles (capacity) to increase approximately 3% year-on-year. Southwest estimates a negative impact of approximately USD100 million to its 3Q2017, and combined with the revenue environment driving weakness in revenue passenger yields, projects operating revenue per available seat mile to be flat to down 1% year-on-year. 3Q2017 operating expense per available seat mile (CASM) is expected to increase 3% to 4% year-on-year. Southwest continues to expect 3Q2017 economic fuel costs to be in the USD2.00 to USD2.05 per gallon range. [more - original PR]