Southwest Airlines has provided an update to its second quarter 2018 revenue guidance and 2018 available seat mile (ASM) capacity guidance.
Based on current booking and revenue trends, Southwest now expects its second quarter 2018 operating revenue per available seat mile (RASM) to decrease approximately three percent, year-over-year. This decrease is at the lower end of the company's previous guidance range of down one to three percent, year-over-year, and is primarily driven by lower bookings largely due to reduced marketing efforts following the Flight 1380 accident.
In conjunction with its flight schedule extension published on May 31, 2018, and in light of current revenue trends and higher oil prices, Southwest has reduced its annual 2018 year-over-year ASM growth to be in the low four percent range, compared with its previous plans to grow ASMs in the low five percent range, year-over-year. The company now expects its second quarter 2018 year-over-year ASM growth to be approximately 3.5 percent, at the lower end of its previous guidance to grow 3.5 to 4 percent, year-over-year. Additionally, the Company now expects second half 2018 year-over-year ASM growth to be approximately six percent, compared with its previous plans to grow ASMs in the low seven percent range, year-over-year.
Although Southwest filed its schedule through January 6, 2019, it does not include any Hawaii flying. Southwest previously indicated it has aircraft to fly to Hawaii beginning this year, assuming they receive FAA approval for ETOPS service. Southwest is currently waiting for that FAA approval, and still plans to sell tickets in 2018.