Southwest Air Cuts Revenue Outlook as CEO Fends Off Activist (3)

Southwest Airlines Co. reduced its estimate for unit revenue in the second quarter, a sign of ongoing challenges at the carrier as it fends off an activist push for a management overhaul.

The company expects revenue per available seat mile to fall as much as 4.5% in the current quarter, Southwest said Wednesday in a regulatory filing. It had previously expected a decline of no more than 3.5%.

Southwest attributed the pared outlook to “complexities in adapting its revenue management to current booking patterns,” according to the filing.

The reduction is an unwelcome development for Southwest Chief Executive Officer ...