FILE – A Southwest Airlines plane prepares to land at Midway International Airport while another taxis on the ground, Feb. 12, 2023, in Chicago. On Wednesday, June 26, 2024, Southwest Airlines said a key revenue ratio will be weaker than expected in the second quarter because of changes in how consumers book travel. That’s not good news for Southwest, which is already under pressure from a hedge fund to make big changes, including getting rid of the CEO. (AP Photo/Kiichiro Sato, File)
DALLAS – Southwest Airlines, already under pressure from a hedge fund for disappointing financial results, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel.
The airline said it still expects second-quarter revenue to hit a record.
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However, Southwest said, revenue for each seat flown one mile – a closely watched measure of pricing power – will fall by 4% to 4.5% compared with the same quarter last year. In April, the airline said the decline would be 1.5% to 3.5%.
Costs per mile will rise by 6.5% to 7.5% compared with a year ago, said the airline, which is dealing with rising labor costs.
The Dallas-based airline said the revenue per mile outlook is worsening mostly due to the difficulty of adapting its pricing to
Southwest Airlines says a key measure of pricing power will be weaker than expected in 2Q
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