Southwest to cut flights this year, pulls guidance, citing ‘macroeconomic uncertainty’

Southwest Airlines said Wednesday that it will reduce its capacity in the second half of the year, as more signs point to weaker domestic bookings this year.

The airline said it expects unit revenue to be flat to down as much as 4% in the second quarter from a year earlier. Southwest said it is not reaffirming its full-year guidance, citing “current macroeconomic uncertainty.”

United and Delta earlier this month announced plans to scale back their domestic capacity plans in the second half of the year. Delta also pulled its full-year forecast while United provided two forecasts, calling the U.S. economy “impossible” to predict.

The carrier’s first-quarter earnings and revenue beat analysts’ expectations.

Here is how Southwest performed in the first quarter compared with Wall Street expectations, according to consensus estimates from LSEG:

• Loss per share: 13 cents adjusted vs. loss of 18 cents adjusted
• Revenue: $6.43 billion vs. $6.40 billion expected

“We are seeing positive results on recently rolled out initiatives,” the company said in its earnings release.

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