Airline stocks were broadly lower Wednesday, led by weakness in Southwest Airlines Co. shares , after the company cut its unit revenue outlook, citing the competitive fair environment and disappointing travel demand. The NYSE Arca Airline Index slumped 1.0%, and has now lost 2.9% since closing at a 16 1/2-year high on March 13. Southwest’s stock dropped 4.7% to pace the Dow Jones Transportation Average’s decliners. The Dow transports’ five other airline components also fell, with shares of JetBlue Airways Corp. shedding 2.2%, Alaska Air Group Inc. giving up 2.1%, American Airlines Group Inc. losing 2.1%, Delta Air Lines Inc. slipping 0.7% and United Continental Holdings Inc. falling 0.5%. Southwest’s stock has tumbled 12.3% over the past three months, while the airline index has gained 1.6% and the S&P 500 has edged up 1.6%.
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