Shares of Southwest plunged Tuesday as the airline said it plans to reduce capacity and reevaluate its full-year financial outlook.
A Southwest Airlines Boeing 737 plane prepares to land at Oakland International Airport on April 25, 2019 in San Leandro, California. Shares of Southwest plunged Tuesday as the airline said it plans to reduce capacity and reevaluate its full-year financial outlook because of fewer expected aircraft deliveries from its supplier, Boeing.
For the first quarter, Southwest now foresees operating revenue per available seat mile being flat to up 2%. Its prior forecast was for the metric to be up 2.5% to 4.5%. The company predicts economic fuel costs per gallon will be in a range of $2.95 to $3. That's higher than its previous estimate of $2.70 to $2.80.