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The summer trip was a Doozy this year - and as autumn approaches, many of us hoped shorter security lines And crowds decreased when we have to go from point to to point B., but while travelers are impatiently awaiting this stay, the aeronautical industry, including the Airlines of Southwest, may not get away so well in the coming months. Read the rest to find out why Southwest is in trouble, according to new data.

In relation: Travelers boycott the southwest for the change of boarding .

South West Submitted a file With the Securities and Exchange Commission of the United States (SEC) earlier this week, which explained some annoying indicators , Seen from the wing reported.

In the file, the airline noted that the capacity was increasing, but revenues by Mile seat are down. In addition to that, the costs and costs of fuel in general are increasing. Although Southwest remains optimistic, the airline has reduced its expectations for the current financial quarter due to higher costs. Southwest expects Income to lower Between 5 and 7% compared to the same period last year, CNBC reported.

"While the leisure bookings in August 2023 were on the low -end of the company's expectations, modestly affected by seasonal trends, the overall leisure demand and the yields continue to remain healthy," said the carrier in the file. "The travel request during the Labor Day weekend was strong and has produced a record performance for the holiday weekend."

But as the view of the wing points out, it would have been quite surprising if the weekend of the Labor Day did not see the record figures thanks to the current inflation.

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The view from the wing also indicates a decrease in performance in terms of business travel. In the file, Southwest wrote that trends "continue to operate in accordance with expectations, and the company continues to expect that global business trips have an improvement in underlying sequential trends underlying in the third quarter 2023. " AE0FCC31AE342FD3A1346EBB1F342FCB

However, View from the Wing notes that although business trips can meet current expectations, these expectations were already fairly low in the light of the evolving business world. It is more difficult to plan travel when everyone is not back to the office every day, and from the COVVI-19 pandemic, companies have also learned that travel is not essential in all situations.

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According to CNBC, fuel and work are the most important costs for airlines - and jet fuel in big cities like Chicago, Houston, Los Angeles and New York have increased by more than 30% since July 5.

For fuel, in particular, Southwest estimated that prices would drop from $ 2.70 to $ 2.80 this quarter, which represents an increase in its previous estimate that it would drop from $ 2.5 to $ 2.65 .

Of course, it is not the only airline that expects the fuel prices to have an impact on profitability. Alaska Airlines provides that more expensive fuel will affect its Margin before tax (The profits calculated after the operating costs and non -operational were deducted, but not taxes), CNBC reported.

And While United Airlines maintains the same income prospects, the carrier also expects the fuel prices to reach $ 3.05 per Gallon (having previously not estimated $ 2.80 in July).

Airlines quarterly reports will be published in October, according to CNBC.

In relation: Southwest tries to win back customers in the middle of the boycott of new boarding changes .

Although airlines can worry about margins and profitability, this situation benefits customers in some respects. Companies often try to transmit higher costs to customers; However, they have to sell tickets to do so. And if post-pandemic travel overvoltage has really reached a summit, airlines will have to do more to encourage customers to fly with them.

According to View from the Wing, Southwest showed his hand by offering several promotions and transactions. The airline holds a fall sale and offer a promotion to speed up the process Companion pass - Which allows a second person to travel with you for free, to pay taxes. Last month, the South West also tried to stimulate reservations by offering a Short -term company pass As a reward.

"They wouldn't do that unless they saw weakness," said the wing.

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