DALLAS — Southwest Airlines Co. said Tuesday it would slow its planned growth in 2008, the second time this year that the low-cost carrier has reined in expansion as it struggles with high fuel costs.
The airline said it would grow 4 percent to 5 percent next year, compared with earlier expectations of 6 percent in 2008. That means adding fewer planes to boost profits.
“We are concerned about growing evidence of slowing economic growth that would inevitably affect passenger demand, coupled with a surge in energy prices,” Chief Executive Gary C. Kelly said in a statement.
The Dallas-based airline plans to add five to 10 new planes next year, down from its previous plans for 19 Boeing 737s.
Southwest first cut its growth plans in June.
Southwest has options to buy fuel at below-market rates, which gives it an advantage over its rivals. Still, rising fuel costs are making it harder for the airline to hit its financial goals.
The announcement comes a day after rival Continental Airlines Inc. cut its growth expectations for mainline operations to 2 percent to 3 percent.
