In this article LUV Follow your favorite stocks CREATE FREE ACCOUNT A Southwest Airlines jet is parked Ellison Onizuka Kona International Airport at Kehole awaiting passengers on January 20, 2024 in Kailua-Kona, Hawaii. Kevin Carter | Getty Images Southwest Airlines shares fell roughly 4% in premarket trading on Wednesday after the carrier cut its second-quarter revenue forecast, citing changing booking patterns. Southwest expects revenue per available seat mile, the amount the airline brings in for every seat it flies one mile, will fall between 4% and 4.
5% in the second quarter over last year, after previously estimating a 1.5% to 3.5% decline.
It also said its unit expenses, excluding fuel, would be up as much as 7.5% over the year earlier period, after previously expecting no change. It said its capacity would rise as much as 9% instead of the flat growth it had previously expected in how much it flies.
Southwest still expects record quarterly operating revenue in the second quarter. Airlines are raking in record numbers of passengers but higher costs and growth in capacity have weighed on fares and profits. "The reduction in the Company's RASM [revenue per available seat mile] expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment," Southwest said in a filing .
Other carriers like Delta and United , meanwhile, have been enjoying passengers' return to international travel and have invest.