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Southwest Airlines has announced an optimistic update for its fourth-quarter revenue expectations, citing strong travel demand and strategic initiatives. The airline now anticipates a year-on-year increase in unit revenues between 5.5% and 7%, surpassing its earlier forecast of a rise from 3.5% to 5.5%. This improvement comes despite a projected 4% decrease in Q4 capacity compared to the previous year.
The airline's fleet strategy remains on track, with plans for around 20 Boeing 737 MAX 8 deliveries and the retirement of 40 older aircraft models by the end of 2024. As of now, Southwest Airlines operates a fleet of 797 Boeing 737 aircraft.
In a significant development, Southwest Airlines has appointed five representatives from Elliott Investment Management to its board of directors, marking the resolution of a proxy battle with the activist investor firm.
