Southwest Airlines (LUV) caught Wall Street off guard Wednesday when the air carrier reduced its revenue guidance for the second quarter.
In a filing with the Securities and Exchange Commission (SEC), Southwest said it now expects revenue per available seat mile (RASM) – a key sales metric in the airline industry – to decline 4% to 4.5% in Q2, compared with its previous outlook for a drop of 1.5% to 3.5%.
