AIRLINES Southwest slows 2024 growth as travel

Southwest Airlines aims to reduce capacity growth next year due to moderate travel demand and reverting booking habits to pre-Covid standards.

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Southwest announced in an earnings announcement that it will increase flights by 10% to 12% in the first quarter of 2024,

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This year, airlines have expanded and travelers have returned to booking during peak vacation and holiday seasons. Capacity expansion lowered airfare.

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Last year, executives blamed high costs on off-peak travel, aircraft shortages, and other issues.

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LSEG, previously Refinitiv, consensus forecasts for Southwest's third-quarter performance compared to Wall Street expectations:

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Adjusted EPS: 38 cents vs. anticipated 38 cents Compared to $6.57 billion predicted, revenue was $6.53 billion.

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Southwest expected fourth-quarter unit revenue to dip between 9% and 11% from a year earlier, with capacity up 21%.

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Southwest's third-quarter net income fell 30% to $193 million, or 31 cents per share, but revenue rose 4.9% to $6.53 billion.

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After labor contract modifications and other one-time expenses, the corporation earned 38 cents per share.

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Fellow discounter Frontier Airlines lost $32 million in the third quarter after making $31 million the year before.

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