A Southwest Airlines Boeing 737 plane leaves from Harry Reid International Airport as another plane taxis in Las Vegas, Nevada, March 15, 2025.
Kevin Carter | Getty Images News | Getty Images
Southwest Airlines said on Wednesday that it would reduce its capacity to the second half, because more signs indicate lower national reservations this year.
The airline said it expects unit income to be stable up to 4% in the second quarter compared to the previous year. Southwest said he did not reaffirm his advice for profits before interest and taxes for 2025 and 2026.
“In the midst of current macroeconomic uncertainty, it is difficult to predict given recent and short -term reservation trends,” Southwest said in a securities file.
United Airlines And Delta airlines Earlier this month, announced its intention to relaunch its internal capacity during the second half. Delta also withdrew his annual forecasts while United provided two forecasts, qualifying the “impossible” American economy to predict.
The earnings and income of the carrier first quarter beat analysts’ expectations.
Here is how Southwest worked in the first quarter compared to Wall Street expectations, according to consensual estimates of LSEG:
- Loss by action: 13 cents adjusted vs loss of 18 cents adjusted
- Income: $ 6.43 billion against $ 6.40 billion expected
The carrier has established spectacular changes to its commercial model of more than half a century in the past year, increasing the channels in which it sells its prices to sites such as ExpediaTo launch a plan to put an end to its open seat model for the attributed seats and introduce restrictive basic economic tickets.
Next month, he plans to start billing many travelers to check their luggage, ending his policy of several decades to allow customers to check two bags for free.
Southwest was under pressure from the Elliott Investment Management militant funds, which has participated in the airline and won board seats last year, to increase income to better compete with competitors who have premium seats, fairs and international networks.
“We see positive results on recently deployed initiatives,” CEO Bob Jordan said in a results statement.
In the first quarter, Southwest displayed a net loss of $ 149 million, an improvement compared to a loss of $ 231 million a year ago and a turnover of more than $ 6.4 billion, which increased by 1.6% compared to a year ago. Adjustment for special items, Southwest reported a loss of 13 cents per share for the three months which ended on March 31.
Southwest leaders will face analysts’ questions during a quarterly call at 12:30 p.m. Thursday.