Southwest Stock Rises as Airline Lifts Outlook on Strong Travel Demand | Global News Avenue

Southwest Airlines (low uvShares rose Thursday morning after the airline became the latest airline to improve its revenue outlook on strong demand for travel heading into the holiday season.

The airline currently expects total available seats to fall 4% year-on-year in the fourth quarter due to “tactical actions” such as “improved network optimization and capacity rationalization”.

Southwest Airlines ‘encouraged’ ahead of holiday travel season

there Smaller flight scheduleHowever, Southwest expects revenue per available seat mile (RASM) to grow 5.5% to 7% year over year, up from its previous forecast of 3.5% to 5.5% growth. The company said it expects revenue growth to be higher than previously because “leisure travel demand is better than expected and actions taken to mature the company’s revenue management technology are delivering faster-than-expected benefits.”

Southwest said it is encouraged by “recent revenue trends” and bookings data for the upcoming holiday season and expects the trend to continue into next year.

After completing the $250 million share repurchase program announced in October, the airline plans to launch an accelerated $750 million repurchase program in the first quarter of 2025, with $1.5 billion remaining from the $2.5 billion program announced in September.

JetBlue Airways has made a similar shift, with prospects soaring under pressure from activist investors

Updated guidance comes from Day two for rival JetBlue Airways (Jilin University) raised its forecast, saying travel demand had increased after last month’s presidential election.

This comes after Southwest Airlines recently announced a series of new measures aimed at increasing revenue. like giving up its famous Open seating policy, as follows months of stress from activist investor Elliott Investment Management. the company drive change at the administrative level What Southwest Airlines should do Driving more revenue growth and earning multiple seats on Southwest’s board of directors Reconciliation announced in October.

Southwest Airlines shares were up 4% around noon Thursday, and are up more than 20% from the beginning of the year.