This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Just more than one week after a Southwest Airlines engine exploded, resulting in the death of one passenger, the carrier says that its bookings have decreased.

In the company’s first quarter profit report released on Thursday, Southwest said that its Revenue per Available Seat Mile (RASM), a factor in pricing power, is expected to decrease 1%-3% in the second quarter. This, as compared to the second quarter RASM of 2017, which totaled 14.27 cents.

“Approximately one to two points of this estimated decrease is attributable to recent softness in bookings following the Flight 1380 incident,” the statement said.

This predicted decrease in RASM for Southwest is in contrast to positive outlooks from competing carriers, which are predicting an increase of pricing-power of as much as 5%.

Although Southwest is predicting its pricing power to decrease, it also announced that it’s going to exercise its options for an additional 40 Boeing 737 MAX 8 aircraft, adding 10 additional firm orders in each year between 2019 and 2022. Southwest was the North American launch customer of the 737 MAX in October 2017.

Other than the predicted decrease in RASM, Southwest’s first quarter total operating revenue increased 1.9% year-over-year, to a first quarter record $4.9 billion. Southwest attributes the profit to record passenger revenues of $4.6 billion.

The aftermath of Flight 1380, the first fatality on board a Southwest Airlines flight, is expected to loom over the carrier. Not only is it predicting its pricing-power gauge to drop next quarter, but the carrier was forced with complying with an FAA directive to inspect all CFM56-7B engines that have operated more than 30,000 total cycles to undergo inspection within the next 20 days. Southwest said on Wednesday that it had successfully completed engine inspections on all 256 engines in its fleet that fell under that FAA directive. It did not comment on any findings.

H/T: Bloomberg

The Platinum Card® from American Express

The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.

Apply Now
More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.