SouthWest lowers guidance for 3Q2017 RASM, cancels 2800 flights due to Hurricane Harvey
Southwest Airlines cancelled (06-Sep-2017) 2800 services due to the impact of Hurricane Harvey and now expects 3Q2017 operating revenue per available seat mile (RASM) to be in the range of down 1% to slightly up year-on-year. The change in guidance is primarily attributable to the current industry revenue environment and weakness in revenue passenger yields. Southwest continues to expect 3Q2017 unit costs to increase in the 2% to 3% range, while 3Q2017 economic fuel costs are projected to be in the USD2 to USD2.05 per gallon range. The carrier expects capacity to increase in the 3.5% to 4% range in 3Q2017, while 4Q2017 capacity is expected to increase in the 1% to 2% range. Southwest continues to expect ASM growth in 1H2018 to be less than 4% and FY2018 ASM growth to be less than 2016's 5.7% growth. 2017 capital expenditures are expected to be approximately USD2.3 billion, with USD1.4 billion in aircraft spending. Approximately USD1.7 billion of its share repurchase programme remains under its current authorisation. [more - original PR]