JP Morgan Reduces Southwest Airlines Estimates

JP Morgan is reducing its estimates on shares of Southwest Airlines Co.

. “LUV June RASM of 5% (excluding AAI) implies 2Q RASM of 6.7% vs. our 8.9% estimate. Holding other inputs constant (as LUV does not provide late-quarter cost guidance), this reduces our 2QE EPS from $0.26 to $0.20 vs. consensus of $0.22,” JP Morgan writes. “Accordingly, our FY11E EPS moves from $0.67 to $0.61 vs. consensus of $0.69. No change to our price target or Neutral rating.” Southwest Airlines closed Wednesday at $10.88.