Southwest Airlines is braced for a decline in second quarter revenue due to the fatal engine explosion in April.
Customers are still shying away from traveling with the airline.
It has widened its forecast to a 3% decline on revenue per mile flown after it pulled most of its marketing efforts following the accident.
CEO Gary Kelly had already warned that ‘a little bit of softness is to be expected’ after in-flight engine failure.
The airline has since completed a fleet-wide inspection of all fan blades as required by a FAA directive.
The April 17 incident was the first fatality on a US airline since 2009.
Southwest also said it is cutting planned growth this year due to surging oil prices.
Fuel costs have risen about 60% in the last year and rivals American and Delta Air Lines have hinted at service cuts in the fall once the busy summer travel season is over.
