Southwest Airlines third-quarter results top expectations
27 Oct 2016 11:47:35
stltoday.com
Southwest Airlines Co., the dominant passenger airline serving St. Louis, says third-quarter profit fell 34 percent on falling fares and higher costs, and the company gave a weak revenue forecast for the rest of the year.
The shares fell sharply in trading before Wednesday's opening bell, leading other carriers lower as well.
Southwest said that overall pricing remains "soft," and it forecast that a key measure of revenue per mile will fall by between 4 percent and 5 percent in the fourth quarter.
That was not what investors wanted to hear. They have been looking for signs that airlines might soon end a two-year slide in prices caused by the carriers adding more seats than can be absorbed by demand.
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