Southwest Airlines faces challenges with growth and profitability

Southwest Airlines plans to slow its capacity growth in 2024 due to moderating travel demand and a shift back to pre-pandemic booking patterns. The airline expects to expand its flying by 10-12% in Q1 2024, down from a previous forecast of up to 16% growth, and aims for 6-8% growth for the full year. This adjustment comes as airlines have expanded their flying this year, leading to lower airfares. Southwest's net income in Q3 2023 dropped 30% from the previous year, while revenue increased 4.9%. Other low-cost carriers, such as Spirit Airlines and Frontier Airlines, also reported losses and forecasted negative margins for the fourth quarter.