Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Southwest shares sink as airline reports airport exits, Q1 losses
(Sharecast News) - Shares in Southwest Airlines plummeted on Thursday after the carrier announced plans to pull out of four airports to improve its financial performance, as it reported a wider-than-expected loss for the first quarter and trimmed its annual guidance. The company reported an adjusted net loss of €218m for the quarter, compared with a loss of $163m the year before, with the adjusted loss per share widening to 36 cents from 27 cents, slightly worse than the 34 cents estimate.
Southwest said it has made the "difficult decision" to close operations at Bellingham International Airport, Cozumel International Airport, Houston's George Bush Intercontinental Airport, and Syracuse Hancock International Airport.
"To improve our financial performance, we have intensified our network optimisation efforts to address underperforming markets," said president and chief executive Bob Jordan.
Jordan said that achieving financial goals was the company's "immediate imperative", and the recent news about further aircraft delivery delays at Boeing presents "significant challenges for both 2024 and 2025".
"We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our customers," he said.
First-quarter revenues increased 10.9% year-on-year to a record $6.3bn, though shy of the company's own forecasts, while revenues per available seat miles or RASM were flat - at the low end of company guidance. This was due to lower-than-expected close-in leisure passenger volume, including lower-than-expected maturation of development markets, Southwest said.
Looking ahead, the company is guiding to ASM growth of around 4% in 2024, down from a previous target of 6%, while economic fuel costs per gallon are now expected to be $2.70-2.80 compared with previous guidance of $2.55-2.65.
What's more, Southwest slashed its capital spending target for the year to $2.5bn, having previously expected to spend $3.5-4.0bn.
Shares finished the session down 7% at $27.26.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
