Southwest Airlines is lowering its capacity plans for the third quarter despite "modestly improved" booking trends for the month, according to a filing with the U.S. Securities and Exchange Commission on Wednesday.
The carrier now expects September capacity will be down about 40 percent year over year, a larger decrease than its earlier estimation of 20 to 25 percent. October capacity will be down between 40 and 50 percent year over year, and for the full third quarter, Southwest said capacity would be down between 30 and 35 percent. It previously had projected a 20 to 30 percent year-over-year decrease in capacity.
Operating revenues for August are down in the range of 70 to 75 percent, which Southwest said is better than expected "based on modest improvements in close-in leisure demand." Even so, "year-over-year revenue declines remain significant, and passenger demand and booking trends remain inconsistent," which led to Southwest's capacity reductions.