Southwest Airlines forecasts strong full-year profit

[June 01, 2023]  (Reuters) -Southwest Airlines Co said on Thursday it continues to expect a strong adjusted profit for the full year as travelers fly more for leisure, leading to more ticket sales.
 
The carrier also reiterated its profit forecast for the second quarter, as summer bookings were boosted by the Memorial Day weekend.   

Southwest airline pilots approach to land at San Diego International airport in San Diego, California, U.S., May 18, 2023. REUTERS/Mike Blake

The forecast comes a day after American Airlines Group Inc raised its second-quarter profit outlook on lower jet fuel costs and high travel demand.

Leisure travel demand and yields continue to be strong in the quarter, Southwest said in a regulatory filing.

Dallas, Texas-based Southwest however expects revenue per seat flown one mile to fall 8% to 10% in the quarter through June, compared to the previous forecast of a fall of 8% to 11%.

The airline said it has not made any material revisions to its 2023 fleet or capacity plans compared with previous guidance, reflecting its expectation to receive about 70 Boeing 737-8 aircraft deliveries.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta and Nivedita Bhattacharjee)

[© 2023 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.