Southwest Airlines’ latest news condemned by investors
Southwest Airlines has lowered its expectations for revenue per available seat miles (RASM) for the second quarter (Q2) to an anticipated drop of 4% to 4.5%.
This is worse than…
June 27, 2024

Southwest Airlines has lowered its expectations for revenue per available seat miles (RASM) for the second quarter (Q2) to an anticipated drop of 4% to 4.5%.
This is worse than its previous estimate of a fall of 1.5% to 3.5% and comes as American airlines anticipate record summer travel demand in the US.
The low cost carrier has predicted record revenues due to this high demand but has also had issues predicting demand trends, leaving many seats unsold.
Shares fell 4% on Wednesday after the news was announced, news agency Reuters reported, as part of a greater fall of 25% in the last two years.
The news was condemned again by Elliott Investment Management, who Reuters report have an 11% stake in the airline, and who have been critical of the carrier in the past.
Elliott Investment partner John Pike and portfolio manager Bobby Xu released a statement that said: “Today’s announcement marks the eighth guidance reduction at Southwest Airlines in the last 18 months with RASM (revenue per available seat mile) now expected to decline 4% to 4.5% in the second quarter, a significant reduction relative to the guidance that Southwest’s management team provided only two months ago.
“Southwest’s industry-trailing revenue performance is clearly continuing along the same disappointing trend line, despite management’s repeated promises for improvement and today’s empty statement that the company is focusing on “delivering operational excellence.”
“Southwest is led by a team that has proven unable to adapt to the modern airline industry; the company’s release today seems to admit as much by stating that the revenue guidance reduction was the result of “complexities in adapting” to the current environment — complexities that Southwest’s peers seem able to adapt to.
“Unfortunately, this is yet another example that fundamental leadership change is urgently needed at Southwest. Elliott is committed to delivering the leadership changes that the company requires.”