Southwest: 'The Company expects third quarter 2023 CASM-X to increase in the range of 3.5 percent to 6.5 percent, year-over-year, primarily due to continued inflationary cost pressures'
Portfolio Pulse from Bill Haddad
Southwest Airlines expects its third quarter 2023 CASM-X (Cost per Available Seat Mile excluding fuel and oil expense) to increase between 3.5% and 6.5% year-over-year, primarily due to ongoing inflationary cost pressures.
July 27, 2023 | 10:35 am
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NEGATIVE IMPACT
Southwest Airlines' projected increase in CASM-X for Q3 2023 due to inflationary pressures could impact the company's profitability and potentially its stock price.
The projected increase in Southwest's CASM-X indicates higher operating costs, primarily due to inflation. Higher costs can squeeze margins and reduce profitability, which can negatively impact the stock price. However, the actual impact will depend on how these costs are managed and whether they can be offset by other factors such as increased revenues.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100