Southwest Airlines raises fourth-quarter unit revenue forecast

(Reuters) -Southwest Airlines on Thursday raised its forecast for fourth-quarter revenue per available seat miles, benefiting from improved pricing and a rebound in domestic travel demand.

Shares of the budget carrier rose about 2.5% before the bell.

The carrier has made a series of efforts over the past year to help reinvigorate demand, including partnerships, seats with more leg room for customers and aircraft sale leasebacks.

In October, the carrier announced it reached a deal with activist Elliott to put an end to a bitter months-long boardroom battle.

The carrier now expects its fourth-quarter RASM, a proxy for pricing power, to be up between 5.5% and 7%, compared with its prior expectation of between 3.5% and 5.5%.