An adjustment to its financial guidance for the third and fourth quarters has lifted Southwest Airlines' optimism over air travel for the rest of the year.
The Dallas-based carrier upgraded its status in its latest Securities and Exchange Commission (SEC) filing, including noting that leisure travel revenue this year is on pace to surpass that of the last pre-pandemic year of 2019.
According to an article in Business Travel News, Southwest said it expects to be profitable when the third quarter ends this month and again in the fourth quarter at year's end. It is estimating operating revenue to increase from nine to 11 percent above 2019 levels after previously estimating a wider span of eight to 12 percent.
"Barring significant unforeseen events and based on current trends, the Company continues to expect solid profits, excluding special items, in third quarter 2022, fourth quarter 2022, and for the full year 2022," Southwest said in its SEC filing.
And, in a bit of a testament to increased airfares, Southwest said it expects profitability despite the expectation that Available Seat Miles will decrease in the third quarter, reporting that "The company continues to estimate full-year 2022 capacity to decrease approximately four percent compared with 2019 levels."
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