NEW YORK (TheStreet) -- For the airline industry, the bad numbers keep showing with the big four carriers all guiding toward second-quarter unit revenue declines of between 4% and 8%.
However, Southwest (LUV) said early Tuesday that it has started to reduce its second-half capacity growth, addressing one of Wall Street's major concerns about the airline industry.
"We have taken steps this week to begin pulling down our second half 2015 (available seat miles) to manage our 2015 capacity growth, year over year, to approximately 7%," Southwest CEO Gary Kelly said in a prepared statement.
Also, "with weaker than expected economic growth, we continue to evaluate our 2016 capacity plans with a current intent to cap our ASM growth to approximately 6% year over year," Kelly said.
Southwest's second-quarter passenger revenue per available seat mile (PRASM) will likely decline between 4% and 5%, the CEO said, "considering recent weakness in close-in revenue passenger yields, an estimated two to three point impact from our year-over-year growth in stage length and seat gauge, and difficult comparisons to last year's strong second quarter performance."
Also Tuesday, American (AAL) said its second-quarter PRASM will decline in a range between 6% and 8%.
United (UAL), meanwhile, reported traffic for May after markets closed on Monday. United said second-quarter PRASM will decline between 5% and 6%. While American didn't cite a cause for the decline, United listed "foreign exchange impact and revenue pressure related to lower oil prices," adding that "yields from close-in domestic bookings and revenue from oil-related corporate accounts have both softened compared to prior guidance."