12:13 PM EDT, 06/26/2024 (MT Newswires) -- Southwest Airlines ( LUV ) on Wednesday cut its second-quarter outlook for a key revenue metric, citing changing demand trends.

The airline now expects revenue per available seat mile, or RASM, to decline between 4% and 4.5% year over year, compared with the prior view of a 1.5% to 3.5% decrease.

"The reduction in the company's RASM expectations was driven primarily by complexities in adapting its revenue management to current booking patterns in this dynamic environment," Southwest ( LUV ) said in a statement.

The company said it still expects an "all-time quarterly record" operating revenue in the ongoing quarter. Analysts surveyed by Capital IQ are projecting Southwest's ( LUV ) second-quarter revenue at $7.42 billion, implying growth from the $7.04 billion it posted for the same period last year.

Southwest ( LUV ) maintained its forecast for available seat miles to be up 8% to 9% year over year and for operating expense per available seat mile excluding fuel to rise by 6.5% to 7.5%. Its view of economic fuel costs per gallon held steady in the $2.70 to $2.80 range.

Southwest ( LUV ) "plans to share additional details with its upcoming second-quarter 2024 financial results and has announced a review of its full plan at Investor Day in September 2024," it said.

In April, Southwest ( LUV ) reported a smaller-than-expected increase in first-quarter operating revenue and flat RASM year over year. Its operating loss ballooned by roughly 38% to $393 million.

Southwest ( LUV ) said at the time it was planning to end 2024 with roughly 2,000 fewer employees and that it lowered its 2024 revenue outlook amid Boeing (BA) delivery delays.

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