Transportation

Southwest Airlines Slows Growth Plans Again With Costs Rising

  • Carrier cuts capacity forecast for first quarter and full year
  • Fourth-quarter profit tops estimates on strong holiday travel
A Southwest Airlines Co. Boeing 737 passenger jet.Photographer: Luke Sharrett/Bloomberg
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Southwest Airlines Co. again trimmed growth plans for this quarter in response to rising costs and an industrywide glut of flights that’s pulling down fares.

Capacity will increase about 10% in the period, down from as much as 12%, the carrier said in a statementBloomberg Terminal Thursday that also detailed fourth-quarter results. Southwest had already cut the target in October from as much as 16%.