Southwest Airlines cuts revenue forecast due to changing booking patterns, faces activist investor pressure

From CNBC: 2024-06-26 07:50:28

Southwest Airlines saw a 4% drop in shares after revising its second-quarter revenue forecast due to changing booking patterns. Revenue per available seat mile is expected to fall between 4% and 4.5% from last year. Unit expenses, excluding fuel, may rise up to 7.5%. Capacity will increase up to 9%. Other airlines like Delta and United are benefiting from a surge in international travel, while Southwest faces activist investor pressure from Elliott Management calling for leadership changes. Southwest considers revenue initiatives like seating assignments and premium seating to adapt to customer needs.



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