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


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 Read the original article here.

Previous articleKey Words: Good news for home buyers? Fannie Mae chief economist says the U.S. housing market has finally turned a corner. Here’s why.
Next articleRussia says it will allow foreign ships to leave Black Sea ports in Ukraine


Please enter your comment!
Please enter your name here