Southwest Airlines cuts revenue estimate on complex environment

Southwest Airlines Co. reduced its estimates for unit revenue in the second quarter, saying it was adapting to lower prices in the current environment.

The carrier expects a decline of as much as 4.5% in revenue per available seat mile in the quarter ending June, down from a previous estimate of a decline of 1.5% to 3.5%, Southwest said in a stock exchange filing. 

“The reduction in the company’s RASM expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment,” the company said in the statement.

Southwest Airlines shares fell as much as 8.8% in premarket trading. The stock is little changed so far this year.