Jefferies analyst Sheila Kahyaoglu lowered the firm’s price target on Southwest (LUV) to $37 from $42 and keeps a Hold rating on the shares. The firm says the company did what it set out to do in Q1. However, revenue per available seat mile was only 1.7 percentage points ahead of the January guide vs American Airlines (AAL)/Delta Air Lines (DAL) at 3 percentage points/4 percentage points better. Q2 RASM is guided to 17.5%, shy of buyside expectations given an improved industry revenue backdrop and giving Jefferies some caution.
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