![]() The Southwest Airlines Pilots Association says more people are quitting. Southwest struggled with a shortage of pilots as travel began recovering last year, but Jordan said it will soon be caught up. “It's a great time to be negotiating as a pilot,” Jordan told CNBC. airlines, including up to 40% more pay over four years at United. Unions are aiming to match higher wages won by counterparts at other major U.S. Southwest is locked in drawn-out negotiations with pilots and flight attendants, who have not received pay raises in several years. The company predicted record revenue and another profit in the third quarter, but warned of higher non-fuel costs. The second-quarter results from Dallas-based Southwest, which were aided by lower fuel prices, beat analyst expectations. Southwest is scheduling more long flights, and it is reducing early-morning and late-night flights. Business travel has yet to recover, causing airlines to tweak their schedules to attract more leisure flyers. Southwest and other airlines are trying to adapt to changes in travel habits since the pandemic. Jordan said, however, that fares actually rose 2% after excluding the revenue Southwest recognized last year from unused vouchers. The average one-way fare on Southwest dropped nearly 3% compared with last summer, to $179.44. Jordan said demand is still strong, and the airline is 70% booked for the third quarter - ahead of where it would normally be in late July. Southwest has since said vouchers won't expire, and that caused a $300 million hit to revenue in this year's second quarter, the CEO said. Southwest recognized revenue based on the expectation that some pandemic-era vouchers and credits would not be used before they expired. Southwest CEO Robert Jordan sought to assure the market, saying that more than half of the decline in the second-quarter revenue ratio could be explained by additional money that Southwest booked a year ago. Southwest and Alaska both operate mostly domestic flights, and they are benefitting less than bigger rivals Delta, United and American from the boom in international flying. That outlook “will amplify concerns around slowing domestic air travel demand,” said Cowen airline analyst Helane Becker.Ī report earlier this week from Alaska Airlines fanned worries that demand for air travel - especially within the United States - might finally be cooling after recovering strongly from the pandemic. ![]() Southwest said that revenue for every seat flown one mile - a closely watched ratio in the airline business - fell 8.3% in the second quarter and will drop by between 3% and 7% in the third quarter, compared with the same periods last year. The shares fell nearly 9% to close at $33.02, the stocks' worst one-day percentage decline since June 2020, shortly after the COVID-19 pandemic crippled air travel. The airline also warned Thursday that a key revenue ratio will drop and non-fuel costs will rise in the third quarter. ![]() DALLAS – Southwest Airlines said second-quarter earnings dropped 10% to $683 million as labor costs soared, offsetting record revenue at the start of the peak summer travel season. ![]()
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