Southwest predicts key revenue figure will dip

SHARE Southwest predicts key revenue figure will dip

DALLAS — Southwest is adding a lot of seats but managing to fill almost all of them.

The airline also says that a key revenue figure will drop 1 percent in the third quarter compared with a year earlier. That’s much smaller than the 6.5 percent decline that Delta Air Lines reported for August.

Both airlines’ decline in revenue for every seat flown one mile indicates that fare wars are taking a financial toll on the airlines. Carriers have been adding flights and seats due to cheaper fuel, leading to lower fares on some routes, particularly during non-peak hours.

Southwest Airlines Co. said Tuesday that it increased passenger-carrying capacity by 7.6 percent last month compared with August 2014. Passengers filled most of the new seats, as traffic rose 7.5 percent. The average flight was 85.4 percent full, down from 85.5 percent a year earlier.

The Latest
Pet owners beware; the flea population in the Chicago area will be higher this summer, according to the Companion Animal Parasite Council.
The Cubs radio analyst, a Southwest Side son, spent a day reliving his past — and the emotions came flooding back.
At least nine people died nationwide and an estimated 11,500 were injured last year in accidents involving fireworks, according to the U.S. Consumer Product Safety Commission.
Local 150 of the International Union of Operating Engineers has been off the job since June 7 and no talks are scheduled.
A team spokesperson said the franchise stuck with White, who is now the voice of LIV Golf, because they felt it wasn’t appropriate to judge where he chose to work outside the club.