Southwest raises Q4 RASM view to up 5.5%-7% from previous view up 3.5%-5.5%

Sees Q4 ASMs down 4% y/y, with CASM-X up 11%-13% y/y. Southwest (LUV) said: “The strong year-over-year unit revenue growth is driven by resilient travel demand along with the realization of benefits from the Company’s execution of tactical actions. Tactical actions include improving network optimization and capacity rationalization, marketing and distribution evolution, and continued efforts to advance revenue management techniques. The improvement in expectations relative to the previous fourth quarter 2024 unit revenue guidance range is driven by the combination of better than expected leisure travel demand and faster than expected benefits from actions taken to mature the Company’s revenue management techniques and better optimize the booking curve. The Company is encouraged by recent revenue trends and forward bookings, including fourth quarter holiday travel, and currently expects strong revenue trends and tactical initiative performance to carry into 2025. This outlook supports the Company’s confidence in the ‘Southwest. Even Better.’ plan, which was unveiled at Investor Day in September 2024.”