Southwest Airlines Co. (LUV) announced today that it recorded a 2.1% decline in passenger traffic for June.
The airline flew 6.7 billion revenue passenger miles (RPMs) last month, compared to 6.9 billion RPMs in the year-ago period.
Available seat miles (ASMs), which indicate capacity, decreased 3.8% to 8.5 billion.
The low-cost carrier also launched one of the biggest fare sales in the company’s history, in which one-way tickets priced between $30 and $90 are on offer to customers for a period of 2 days.
This move by Southwest comes after major airlines raised fares last month in an effort to improve sales.
Meanwhile, 8 of 13 covering analysts lowered expectations on the company’s full-year earnings over the past month, sending the consensus down by 10 cents to 26 cents per share.
LUV, a Zacks #3 Rank (“Hold”) stock, has slipped more than 2% so far today on volume of approximately 3.4 million, which is well below the average daily volume of about 7.5 million.
“LUV” Free Stock Analysis: Buy? Sell? Hold?
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