Southwest Predicts Key Revenue Figure Will Dip In 3Q
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DALLAS (AP) - Southwest Airlines Co. is adding a lot of seats but managing to fill almost all of them.
Dallas-based Southwest said Tuesday that it increased passenger-carrying capacity by 7.6 percent last month compared with August 2014. Passengers filled most of the new seats, as traffic rose 7.5 percent. The average flight was 85.4 percent full, down from 85.5 percent a year earlier.
Southwest expects a key revenue figure will drop 1 percent in the third quarter, compared with a year earlier. That's much smaller than the 6.5 percent decline that Delta Air Lines reported for August.
Both airlines' decline in revenue for every seat flown 1 mile indicates fare wars are taking a financial toll. Carriers have added flights and seats due to cheaper fuel, with lower fares on some routes.
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