A Southwest Airlines Boeing 737 Airplane departs from the Harry Reid International Airport on March 15, 2025 as another airplane taxis at Las Vegas, Nevada, Nevada.
Kevin Carter | Getty Image News | Getty images
Southwest Airlines On Wednesday, it said that it would reduce its capacity in the second half of the year, as more signs indicate weak domestic booking this year.
The airline said that the unit revenue would be more than 4% in the second quarter from one year ago. Southwest said it is not confirming its guidance for interest and earnings before taxes for 2025 and 2026.
Southwest said in the admission of a securities, “It is difficult to predict the recent and short -term booking trends, amidst the current macroeconomic uncertainty.”
United Airlines And Delta air lines Earlier this month announced a plan to return its domestic capacity in the second half of the year. Delta also pulled out its entire year’s forecast while United provided Two forecastsCalling the American economy “impossible” to predict.
The carrier’s first quarter earnings and revenue defeated the expectations of analysts.
According to unanimous estimates from LSEG, South -West in the first quarter compared to Wall Street expectations in the first quarter:
- Per share loss: 13 cents adjusted vs. 18 cents loss adjusted
- Income: $ 6.43 billion vs $ 6.40 billion is expected
The carrier has made dramatic changes in more than half of its business models in the last one year, which increases the channels in which it sells its rent to the sites like ExpidiaTo start a plan to finish your open-seating model Assigned seats And introduction of restrictive basic economy tickets.
Next month, it is planning to start charging many passengers. Check their belongingsEliminating your decades -old policy of allowing customers to check two bags for free.
In the South West, Activist Hedge Fund has been under pressure from Elliot Investment Management, which took a one Stake In the airline and last year, the board won the seats, which is to increase revenue to better competition with rivals. Premium seatsLounge and International network,
CEO Bob Jordan said in an earning release, “We have recently seen positive results on roll out initiative.”
In the first quarter, Southwest posted a net deficit of $ 149 million, improving with a loss of $ 231 million a year ago, and a revenue of more than $ 6.4 billion, which was 1.6% a year ago. Adjustment to special items, Southwest reported a loss of 13 cents per share for three months ending 31 March.
South -West officials will face questions from analysts on a quarterly call on ET at 12:30 pm on Thursday.
