Southwest Airlines reported a net income of $367 million for Q2 2024, down 46.3% YoY, despite record quarterly operating revenues of $7.4 billion. The company's performance was impacted by both external and internal factors, falling short of expectations. RASM decreased 3.8% YoY, driven by industry-wide domestic capacity growth outpacing demand.In response, Southwest announced plans to implement assigned and premium seating as part of a comprehensive upgrade to enhance customer experience. The airline is taking urgent steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives aimed at driving meaningful top and bottom-line growth.Southwest expects Q3 2024 unit revenue to be flat to down 2% YoY, with capacity up roughly 2%. The company plans to share details of its initiatives to drive margin expansion and improve ROIC performance at its Investor Day in late September. Southwest maintains a strong liquidity position of $11.0 billion, well above its outstanding debt of $8.0 billion.

Southwest Airlines reported a net income of $367 million for Q2 2024, down 46.3% YoY, despite record quarterly operating revenues of $7.4 billion. The company's performance was impacted by both external and internal factors, falling short of expectations. RASM decreased 3.8% YoY, driven by industry-wide domestic capacity growth outpacing demand.In response, Southwest announced plans to implement assigned and premium seating as part of a comprehensive upgrade to enhance customer experience. The airline is taking urgent steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives aimed at driving meaningful top and bottom-line growth.Southwest expects Q3 2024 unit revenue to be flat to down 2% YoY, with capacity up roughly 2%. The company plans to share details of its initiatives to drive margin expansion and improve ROIC performance at its Investor Day in late September. Southwest maintains a strong liquidity position of $11.0 billion, well above its outstanding debt of $8.0 billion.