Southwest Expects Lower Pricing Power as Airlines Add Capacity

Southwest Airlines is experiencing reduced pricing power because airlines have added flights and seats.The company said in a Wednesday (June 26) filing with the Securities and Exchange Commission (SEC) that it has changed its outlook for revenue per available seat mile (RASM) in the current quarter from its previous estimate of a year-over-year drop of 1.5% to 3.5% to its current estimate of a drop of 4.0% to 4.5%.“The reduction in the company’s RASM expectations was driven primarily by complexities in adap ...