Southwest Airlines stock gains after updating guidance, following ‘strong’ travel demand over the Memorial Day weekend

Shares of Southwest Airlines Co. LUV edged up 0.4% toward a 4-week high in premarket trading Thursday, after the air carrier updated its second-quarter estimates in the wake of “strong” travel demand during the Memorial Day weekend. The company’s estimate for the year-over-year change in revenue per available seat miles (ASM) improved to a decline of 8% to 10% from a decline of 8% to 11%. The outlook for capacity was unchanged at up approximately 14%, while the outlook for economic fuel costs per gallon was revised higher to approximately $2.55 from $2.45 to $2.55. “Second quarter 2023 leisure travel demand and yields…