Southwest Airlines forecasts strong full-year profit

Reuters | June 1, 2023

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(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.

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)


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