Southwest cuts Q1 RASM view to 3%-4% from 4%-5%
In a regulatory filing, Southwest Airlines is providing guidance regarding its first quarter 2019 operating revenue trends. The company previously communicated an estimated negative revenue impact in the $10M-$15M range for January 1st through 23rd related to the government shutdown. Since then, the company has continued to experience softness in passenger demand and bookings as a result of the government shutdown. As a result, the company now estimates the negative revenue impact to first quarter 2019 to be approximately $60M. Aside from this impact, the company has continued to experience strength in year-over-year close-in yields, thus far in first quarter 2019. Based on current bookings and yield trends, the company now expects its first quarter 2019 operating revenue per available seat mile, or RASM, to increase in the three to four percent range, year-over-year. This compares with the company's previous first quarter 2019 RASM guidance of a year-over-year increase in the four to five percent range.