How Did Southwest Perform Operationally In August?
Southwest Airlines (NYSE:LUV) managed to report better-than-expected rises in its monthly metrics for the month of August, despite adverse weather conditions. The company grew its capacity by 4.9% y-o-y, bringing the year to date capacity up by 4.8%. Furthermore, the occupancy rate increased by a modest 30 bps to come in at 84.9%. Passenger traffic grew at a notable pace of about 5.3% y-o-y, with year to date traffic touching 4.6%.
Based on the aforementioned results, coupled with the impact from Hurricane Harvey and the current industry revenue environment driving weakness in passengers boarded, the company expects the Q3 revenue per available seat mile (RASM) to fall within the range of +/- 1% y-o-y.
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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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