Southwest just issued a chilling warning to the airline industry
Southwest
Shares of the low-cost airline plummeted 9% in morning trading.
Southwest reported $820 million in profits for the second quarter of 2016 - up from $608 million during the same period last year.
However, investors are more concerned with the airline's warning that it is expecting unit revenue to fall as much as 4% next quarter due to lower ticket prices and greater levels of competition.
Even though America's fourth largest airline has saved 10% on fuel costs last quarter while returning an operating margin in excess of 18%, the airline also reported that ticket prices have fallen 3.7%.
Earlier this week, United Airlines also reported experiencing pressure from lower tickets prices and greater competition during the second quarter of 2016.
This news comes less than a day after computer failures forced Southwest to cancel 920 flights on Wednesday and Thursday.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market