From CNBC: 2024-07-25 06:51:26

Southwest Airlines predicts a potential decrease in unit revenue for Q3 due to oversupply in U.S. market, expecting a 2% decline in unit revenue and a 13% rise in non-fuel costs. Shares dropped 4% in premarket trading. Q2 results exceeded expectations with adjusted EPS of 58 cents and revenue of $7.35 billion.

Southwest is in talks with Boeing for compensation due to delivery delays. The airline plans to make changes including eliminating open seating, offering seats with extra legroom, and adding overnight flights. These changes aim to increase revenue and drive growth, making Southwest more competitive with network carrier rivals.

Delta Air Lines and United Airlines anticipate U.S. capacity moderation next month, potentially leading to higher fares. Changes at Southwest are part of efforts to overcome revenue challenges and implement transformational initiatives for growth. Stay tuned for updates on this developing story.



Read more at CNBC:: Southwest Airlines (LUV) earnings Q2 2024