Southwest Airlines shares up 2.9% premarket after company raises Q2 revenue guidance

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Southwest Airlines Co. shares LUV, +1.73% jumped 2.9% in premarket trade Thursday, after the carrier updated guidance for the second quarter and raised its outlook for operating revenue. The airline is now expecting revenue to rise 12% to 15% vs. 2019, before the start of the pandemic, up from prior guidance of up 8% to 12%. “The Company continues to experience strong load factors and an acceleration in bookings for summer travel,” Southwest said in a regulatory filing. “The improvement in the Company’s second quarter 2022 operating revenue guidance is primarily attributable to continued passenger yield strength, which has more than offset the increase in its second quarter 2022 fuel price projection. Barring any unforeseen events and based on current trends, the Company expects solid profits and operating margins, excluding special items, in second quarter 2022 and for the remainder of this year.” The company is still expecting second-quarter available seat miles to be down about 7%. It now expects fuel costs per gallon to $3.30 to $3.40, up from prior $3.05 to $3.15. Shares are down 0.9% in the year to date, while the U.S. Global Jets ETF JETS, +2.25% has fallen 10% and the S&P 500 [sP: spx] has fallen 17%.

This article was originally published by Marketwatch.com. Read the original article here.

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