Southwest Airlines Cuts Q2 Revenue Outlook Amid Higher Costs

Southwest Airlines stock is choppy Wednesday after the company cut its revenue guidance for the second quarter. Here's what you need to know.

 Southwest Airlines Boeing 737-800 prepares for takeoff at Los Angeles International Airport.
(Image credit: Getty Images)

Southwest Airlines (LUV) caught Wall Street off guard Wednesday when the air carrier reduced its revenue guidance for the second quarter.

In a filing with the Securities and Exchange Commission (SEC), Southwest said it now expects revenue per available seat mile (RASM) – a key sales metric in the airline industry – to decline 4% to 4.5% in Q2, compared with its previous outlook for a drop of 1.5% to 3.5%. 

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.