Southwest Experiences Drop in July Load Factor, Forecasts Further Drop in Q3 Revenue

By Jesse Sokolow on 10 August 2016
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DSC_0016Southwest Airlines announced operational results for July 2016. The airline said it expects revenue per available seat mile in the third quarter to decline more than it previously expected.

The carrier’s total system traffic was 11.67 billion RPMs, or revenue passenger miles, a year-over-year increase of 1.4% from 11.5 billion RPMs in July 2015.

The airline reported a total system capacity of 13.42 billion ASMs, or available seat miles, up 2.3% from 13.12 billion last July.

Meanwhile, Southwest had a load factor of 86.9% for the month, which was a 0.8 percentage point decrease from 87.7% the previous July.

Southwest originally forecast a drop of 3% to 4% in RASM for the third quarter but, as a result of numerous delays and over 2,000 cancellations following a computer outage in July, it now expects RASM to decline by 3.5% to 4.5%.

(Photo: Accura Media Group)

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