Topics

JPMorgan Chase & Co.

Southwest clashes with investors on best path to revenue growth

Southwest Airlines is resisting calls by some investors to pull back on planned expansion this year and raise fares, moves that could help stem declines in a key industry revenue gauge.

The carrier won't join rivals in trimming capacity during the rest of this year, Chief Executive Officer Gary Kelly has said. Its unwillingness to take that step, which generally enables airlines to increase prices, is a disappointment to investors like Chris Terry.

"I'd like to see them boost their fares but also cut capacity," said Terry, a portfolio manager at Hodges Capital Management Inc. "That's what the market wants. That's what the market is telling everyone. Supply...

86°