How Did Southwest Perform Operationally In May?
Southwest Airlines (NYSE:LUV) managed to report less-than-expected rises in their monthly metrics for the month of May. That said, in comparison to Q1, Q2 should see better numbers as macro conditions the world over see a positive reversal.
The company grew its capacity by 4% y-o-y in May, bringing the year to date capacity up 4.8%. Furthermore, the occupancy decreased marginally by 40 bps. Additionally, passenger traffic grew at a notable pace of 3.4%.
Based on these results and current trends, the company continues to expect its second quarter 2017 operating revenue per ASM (RASM) to increase in the one to two percent range, as compared with the second quarter 2016. We’ll gain more clarity on this in the upcoming earnings call.
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines
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