Southwest Air’s Slight Outlook Boost Disappoints Wall Street
- Carrier expects higher jet-fuel costs in fourth quarter
- JetBlue raised sales expectations on robust year-end demand
Southwest is the latest US carrier to highlight improving travel trends in recent days.
Photographer: Cesar Rodriguez/BloombergThis article is for subscribers only.
Southwest Airlines Co. kept its year-end outlook largely intact despite stronger-than-expected holiday travel, unsettling investors who had been anticipating a bigger boost.
The carrier slightly raised the low end of its fourth-quarter revenue forecast while keeping projections for non-fuel costs and flight capacity unchanged. Fuel expenses will be as much as $3.10 a gallon in the period, Southwest said Wednesday in a regulatory filing Wednesday, up 10 cents from the prior range.