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

Tanzeel Akhtar

Southwest Air Co (NYSE: 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.

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