Southwest Airlines Updates Q1 Guidance: Sees RASM Flat To Up 2% (Prior Est. Up 2.5%-4.5%), Sees Economic Fuel Costs Per Gallon $2.95-$3.00 (Prior Est. $2.70-$2.80)
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Southwest Airlines has revised its Q1 guidance, now expecting Revenue per Available Seat Mile (RASM) to be flat to up 2%, a decrease from the previously estimated increase of 2.5%-4.5%. Additionally, the airline anticipates its economic fuel costs per gallon to be between $2.95 and $3.00, up from the prior estimate of $2.70-$2.80.
March 12, 2024 | 10:52 am
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Southwest Airlines has lowered its Q1 RASM growth expectations and increased its forecast for economic fuel costs per gallon.
The revision in guidance, particularly the decrease in expected RASM growth and the increase in forecasted fuel costs, could lead to concerns about profitability and operational efficiency. This may negatively impact investor sentiment and the stock price in the short term.
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