Shares of Southwest Airlines Co. (NYSE:LUV) fell on Thursday after the company posted first-quarter earnings that missed Wall Street analyst expectations.
The stock plummeted 3.5% to US$52 after the company forecast a decline in second-quarter revenue between 1% and 3%.
For the quarter ended March 31, Southwest Airlines reported earnings of US$0.75 per share on revenue of US$4.9 bn. The Earnings Whisper number was $0.76 per share.
Revenue increased 1.9% from a year earlier to $4.9 bn, while analysts expected $5 bn.
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The airlines warned of weaker revenue ahead as it continues to deal with the fallout of last week's fatal accident following an engine blowout on a flight from New York to Dallas. The mid-air engine failure killed a passenger.
Southwest forecast a 1 to 3% decline in second-quarter revenue. The bleak outlook diverges with those of rival airlines, which have predicted increases in the revenue gauge of as much as 5%.
"Approximately one to two points of this estimated decrease is attributable to recent softness in bookings following the Flight 1380 accident," said Southwest.
The company is in the middle of a fan-blade inspection program that has prompted a cancellation of scores of flights.