LUV - Why Southwest Airlines Shares Are Diving Tuesday | Benzinga
Southwest Airlines Company (NYSE:LUV) shares are falling on Tuesday in the premarket session.
The company’s shares are tumbling after lowering its first-quarter guidance.
Southwest Airlines said it sees first quarter 2024 RASM to be flat to up 2%, significantly lower than the prior estimate of up 2.5% to 4.5%.
Approximately one point of the decrease is due to higher-than-expected completion factors in February and March, with the remainder primarily attributable to lower-than-expected close-in leisure passenger volume.
Regarding the timing of expected aircraft deliveries, Boeing Company (NYSE:BA) has advised Southwest Airlines to expect 46 737-8 aircraft deliveries in 2024, a reduction from the company’s previous expectation of 79 737 MAX aircraft deliveries, which included 58 -8 aircraft.