Southwest slows 2024 growth as travel
Southwest Airlines aims to reduce capacity growth next year due to moderate travel demand and reverting booking habits to pre-Covid standards.
Southwest announced in an earnings announcement that it will increase flights by 10% to 12% in the first quarter of 2024,
This year, airlines have expanded and travelers have returned to booking during peak vacation and holiday seasons. Capacity expansion lowered airfare.
Last year, executives blamed high costs on off-peak travel, aircraft shortages, and other issues.
LSEG, previously Refinitiv, consensus forecasts for Southwest's third-quarter performance compared to Wall Street expectations:
Adjusted EPS: 38 cents vs. anticipated 38 cents Compared to $6.57 billion predicted, revenue was $6.53 billion.
Southwest expected fourth-quarter unit revenue to dip between 9% and 11% from a year earlier, with capacity up 21%.
Southwest's third-quarter net income fell 30% to $193 million, or 31 cents per share, but revenue rose 4.9% to $6.53 billion.
After labor contract modifications and other one-time expenses, the corporation earned 38 cents per share.
Fellow discounter Frontier Airlines lost $32 million in the third quarter after making $31 million the year before.
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