Southwest Air Improves Q3 Operating Cost Guidance, Sees No Material Impact From Hurricane Dorian

Southwest Air Co LUV cancelled 600 flights in September due to Hurricane Dorian, but the company said it does not see a material effect in the third quarter.

The company reaffirmed its third-quarter operating revenue per available seat mile guidance at 3-5% year-over-year growth, according to Southwest Air's 8-K filing.

Southwest Air cut its third-quarter guidance for operating costs per available seat mile ex fuel, oil expense and profit sharing expense from up 9-11% to up 8-10% year over year.

Due to Hurricane Dorian, travel was disrupted on Labor Day weekend. A number of airlines waived change and cancellation fees for flights to and from Florida and South Carolina.

Southwest said it expects its third-quarter available seat miles to fall by about 3% vs. prior guidance for a decrease of 2-3%. 

The airline cancelled about 600 flights due to Hurricane Dorian, which Southwest said will have an immaterial impact on third-quarter results. 

Southwest Air shares were trading up 0.14% at $55.81 in Wednesday’s premarket session. The stock has a 52-week high of $64.02 and a 52-week low of $44.28.

Related Links:

Southwest Airlines Falls After Q2 Earnings

The Boeing 737 MAX Has Been Grounded Since March: How Are Airlines Responding?