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Southwest Airlines Cautious About Summer Travel

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DALLAS (AP) - Southwest Airlines Co. says June ticket sales are good but remains cautious about the peak summer travel season because of automatic government spending cuts and higher taxes.

Dallas-based Southwest expects revenue per seat for each mile flown will decline by a low-single-digit percentage in the second quarter. That’s a closely watched statistic in the airline business.

Chief financial officer Tammy Romo said Thursday that Southwest has been able to boost traffic — the airline has been running a sale this week on fall travel — but the promotions have cut into revenue per passenger.

Revenue trends weakened in April and May at Southwest and several other airlines. Romo spoke at an investor conference in New York.

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