Budget airline Southwest expects revenue per available passenger mile (RASM) to increase by 3-5 percent in the third quarter, according to guidance issued Wednesday, up from 6.8 percent in the previous quarter and 1.2 percent in the comparable quarter last year.

American Southwest states that it has noted "continued strong demand and strong passenger yield trends", which is behind the stronger RASM figure compared to last year's quarter.

Southwest is also lowering its third-quarter cost guidance for available seat miles (CASM) to the range of 8-10 percent from previously 9-11 percent and for available seat miles (ASM) to -3 percent, from the previous guidance of a 2-3 percent decline.

Hurricane Dorian, which ravaged the southeastern territories of the United States in early September, is not expected to have any material effect on the company's accounts.

Southwest's stock is up 20 percent for the year. 

Source: Nyhetsbyrån Direkt