Share to Facebook Share to Twitter Share to Linkedin Southwest Airlines has cut its revenue guidance, lowering expectations for its operating revenue this quarter. (Photo: Kevin Dietsch) B arely two weeks after a high-profile investor fired a shot across the company bow, Southwest Airlines submitted a SEC regulatory filing on Wednesday, cutting its revenue guidance for the quarter. The company cites “complexities in adapting its revenue management to current booking patterns in this dynamic environment” and notes that it expects to announce an all-time record for operating revenue in its next quarterly earnings report scheduled for next month.
In the filing, Southwest says it “remains intensely focused on improving its financial results and creating value for its shareholders.” The Dallas-based low-cost carrier now expects second-quarter operating RASM (revenue per available seat mile) to be down 4% to 4.5% year over year.
Previously, the company had forecasted a drop of 1.5% to 3.5%.
“We are operating in a dynamic environment, both in terms of customer behavior and as we navigate the Boeing-driven delays in aircraft production and delivery,” Southwest said in a statement shared with Forbes on Wednesday. “Southwest estimates we will deliver strong operating results in the second quarter, including a 99.8% completion factor quarter-to-date, despite challenging weather conditions in several of our largest markets,” the airline said.
The completion factor, or CF,.