Southwest Airlines (NYSE:LUV) airlines narrowed its revenue guidance for the third quarter on Thursday, noting business travel remains well below 2019 levels.
The Texas-based air carrier revised its third quarter revenue expectations to a growth of 9 to 11% over 2019 levels, from a prior 8 to 12% expectation. The company explained that while leisure travel continues to trend strongly, business travel remains below what the company had previously anticipated.
“July and August 2022 managed business revenues were down approximately 26% and 32%, respectively, both compared with their respective 2019 levels,” an 8-K filing explained. “The Company now expects third quarter 2022 managed business revenues to be down in the range of 26% to 28%, compared with third quarter 2019 levels, compared with its previous estimate to be down in the range of 17% to 21%.”
Capacity for the third quarter is expected to equal 2019 levels. However, full year 2022 capacity is still expected to decrease approximately 4% from pre-pandemic levels.
Dig into the earnings expectations for the company.