Dallas-based Southwest Airlines reported a loss of $149 million in the first quarter which still beat Wall Street expectations.
CEO Bob Jordan told KRLD's David Johnson they are pulling back in some areas because of a drop off in domestic leisure travel.
"Because of the demand weakness, we are actually cutting capacity in the third quarter and the fourth quarter about a point and a half each," Jordan said. "We already had low capacity for the year which will come in right at the 1% range."
He says if the leisure travel continues to stay low, that could bleed into business travel but he has not seen any indictation of that yet.
Southwest is on a path to generate revenue with marketing and business changes that have already been announced.
"We're going to be selling a new basic fare next month, we've got bag fees coming," Jordan said. "We're changing the way you burn your points on the Rapid Rewards programs."
The airline did post a revenue of $6.43-billion in the first quarter which slightly beat expectations.
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