Shares of Southwest Airlines (LUV) ended Tuesday’s trading day to the downside, by about 4 percent. The stock is TheStreet’s Move of the Day. The company released its May traffic results on Tuesday. The airline flew 10.2 billion revenue passenger miles, an 8.5% increase from May 2014. But according to company estimates, passenger revenue per available seat mile, a key industry metric, fell 6 percent year-over-year in May. Southwest expects second quarter passenger revenue available per seat mile to drop between 4 and 5 percent from the second quarter of 2014. Southwest CEO Gary Kelly said: ‘We have taken steps this week to begin pulling down our second half 2015 available seat miles to manage our 2015 capacity growth, year-over-year, to approximately seven percent. With weaker than expected economic growth, we continue to evaluate our 2016 capacity plans with a current intent to cap our available seat miles growth to approximately six percent, year-over-year.’ At $34.93 per share, the stock trades at roughly 14 times greater than its pre-share earnings last year, according to data compiled by Bloomberg. Trading volume was particularly heavy on Tuesday with almost 31 million shares trading hands, compared to its daily average of 7.7 million shares. Shares of Southwest Airlines has fallen almost 18 percent since the start of the year. TheStreet’s Scott Gamm reports from New York.
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