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Airline stocks mixed after reports from Southwest, American

Volatility continued for airline stocks Tuesday after American Airlines revised earnings for the second quarter and Southwest Airlines announced limits on added seats. American, the world’s largest airline company, said Tuesday it expects to see a 6% to 8% decline in an important revenue metric for airlines – passenger revenue per available seat mile – and lowered its pretax profit margin range for the second quarter to be between 16% to 18%.635482706589322831-AP-Airline-Travel

Citing “weaker than expected economic growth,” Southwest CEO Gary Kelly said Tuesday he wants evaluate the carrier’s capacity plans and cap annual capacity growth at 6%. The airline reported a 7.6% increase in capacity for May. The reports come after Delta Air Lines and United Continental Holdings revised their second quarter outlook Monday. Delta said it expects its revenue per seat mile revenue to fall 4% to 5%. United Continental lowered its outlook to a 5% to 6% decline.

The carriers’ revisions underscore investors’ concerns that consumer demand may be trailing the number of seats available. Shares of Southwest fell almost 5% to $34.35 in early afternoon trading. American shares rose 0.8% to $40.17. United Continental was up 0.46%, to $51.97. Delta fell 1% to $40.37.