Attention Airline Investors: Southwest Adjusts Q2 Guidance

Southwest Airlines Co LUV cut second-quarter available seat miles per gallon guidance from down 1% to flat, to down 1-2% due to the grounding of its Boeing 737 MAX. The airline highlights the Boeing 737 MAX aircraft was its most fuel-efficient aircraft.

Southwest Airlines has continued to experience solid demand and strong passenger yield trends year over year during the second quarter.

Southwest Airlines now expects second-quarter operating revenue per available seat mile to increase in the 6.5% to 7.5% range year over year, as compared with its previous guidance of a year-over-year increase in the 5.5% to 7.5% range.

The airline expects second-quarter operating costs per available seat mile excluding fuel and oil expense and profit sharing expense, to increase in the 11.5% to 12.5% range year over year, compared with its previous guidance of 10.5% to 12.5% due to the impact of lower-than-expected second-quarter available seat miles.

Southwest shares traded up 1.3% at $52.37 in Wednesday's pre-market session.

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