Southwest Airlines Co. (LUV) - Get Report shares were lower premarket before paring losses in early trading Thursday, Sept. 28, after the company said its annual operating revenue will be slashed by about $100 million because of natural disasters this quarter.
Because of hurricanes and earthquakes that rocked the airline industry this summer, the cost of each available seat flown per mile will increase by 3% to 4% in the third quarter compared to the same period last year.
Revenue per available seat mile, which is often utilized as a measure of airline pricing power, is set to be flat to down 1%, the Dallas-based carrier made said in a Thursday regulatory filing with the SEC.
Through Wednesday, Southwest had canceled 5,000 flights as a result of natural disasters. The updated expectations for the rest of 2017 "reflect the impacts from the devastating hurricanes and earthquakes."
Southwest stock traded up 0.6% Thursday morning to $56.21,
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