Southwest provides Q2 guidance

Eleanor Steed
By Eleanor Steed June 8, 2017 09:39

Southwest provides Q2 guidance

Southwest Airlines continues to expect its second quarter 2017 operating revenue per available seat mile (RASM) to increase in the one to two percent range, as compared with second quarter 2016. Based on current cost trends and excluding fuel and oil expense, special items, and profit-sharing expense, Southwest continues to expect its second quarter 2017 unit costs to increase approximately six percent 1 and its annual 2017 unit costs to increase approximately three percent, both year-over-year. The airline says that it continues to expect its cost inflation to abate dramatically in second half 2017 to end this year with fourth quarter unit costs in line with year-ago levels, excluding fuel and oil expense, special items, and profit-sharing expense. As of June 5, 2017, second quarter 2017 economic fuel costs are still estimated to be in the $1.95 to $2.00 per gallon range.

Southwest continues to expect its full year 2017 available seat miles (capacity) to increase approximately 3.5 percent, year-over-year, with approximately 2.5 points of the increase relating to its domestic growth. While the airline has not finalized its 2018 capacity plans, it continues to expect year-over-year available seat mile (ASM) growth in first half 2018 to be less than four percent, and its full year 2018 year-over-year ASM growth to be less than its 2016 year-over-year ASM growth of 5.7 percent.

Southwest continues to estimate its 2017 capital expenditures will be approximately $2.3 billion.

Eleanor Steed
By Eleanor Steed June 8, 2017 09:39