Southwest Airlines reported its second quarter results, with profits declining 46% for the quarter on a year-over-year basis.While revenues rose to a record $7.35 billion, a 4.5% increase YoY, unit revenue decreased with capacity growth outstripping demand.RASM was 15.9 cents this year, down from 16.53 cents last year.
Net profit at the carrier was $367 million for the quarter, compared to $683 million in 2023.That will add to pressures for change from an activist investor, Elliot, just as the FAA is opening an investigation of operations after three recent unsafe descents, a take-off from a closed runway, and a “Dutch roll” incident with a 737MAX.With calls for management changes, a financial downturn, and operational problems, Southwest is in trouble.The carrier has now outgrown the competitive financial advantage it once had.
