Southwest Airlines Sees Q1 ASMs Up ~10% YoY, Economic Fuel Costs Per Gallon $2.70-$2.80; Sees 2024 ASMs Up ~6% YoY, Economic Fuel Costs Per Gallon $2.55-$2.65
Portfolio Pulse from Benzinga Newsdesk
Southwest Airlines forecasts a 10% increase in Available Seat Miles (ASMs) for Q1 year-over-year and estimates economic fuel costs per gallon to be between $2.70 and $2.80. For 2024, the airline anticipates a 6% rise in ASMs year-over-year with fuel costs projected to be $2.55 to $2.65 per gallon.
January 25, 2024 | 11:34 am
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Southwest Airlines expects a 10% increase in Q1 ASMs YoY and fuel costs per gallon of $2.70-$2.80. For 2024, a 6% increase in ASMs and fuel costs of $2.55-$2.65 per gallon are anticipated.
The projected increase in ASMs indicates growth and potential revenue increase for Southwest Airlines, which is positive for the stock. However, the forecasted rise in fuel costs could pressure profit margins. The net effect is likely positive in the short term as the market often reacts favorably to growth indicators.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100