Southwest Airlines shares fell Wednesday after the provider minimize its second-quarter income forecast, citing altering reserving patterns.

The inventory had been down about 4% in early buying and selling earlier than recovering some losses.

Southwest expects income per obtainable seat mile, the quantity the airline brings in for each seat it flies one mile, will fall between 4% and 4.5% within the second quarter over final yr, after beforehand estimating a 1.5% to three.5% decline.

It additionally stated its unit bills, excluding gas, can be up as a lot as 7.5% over the year-earlier interval, after beforehand anticipating no change.

It stated its capability would rise as a lot as 9% as a substitute of the flat development it had beforehand anticipated in how a lot it flies.

Southwest nonetheless expects file quarterly working income within the second quarter.

Airways are raking in file numbers of passengers however increased prices and development in capability have weighed on fares and income.

“The discount within the Firm’s RASM [revenue per available seat mile] expectations was pushed primarily by complexities in adapting its income administration to present reserving patterns on this dynamic atmosphere,” Southwest stated in a filing.

Different carriers like Delta and United, in the meantime, have been having fun with passengers’ return to international travel and have invested closely in vacationers’ willingness to pay extra for roomier seats.

Southwest is below activist investor stress from hedge fund Elliott Management, which has referred to as for CEO Bob Jordan and Chairman Gary Kelly to get replaced, saying the corporate is underperforming and desires a change on the prime.

The Dallas-based airline has expressed confidence in its management and reiterated that it’s contemplating income initiatives like seating assignments or premium seating, which might be massive changes to the corporate’s easy enterprise mannequin that has been worthwhile for many of the final 5 a long time.

“We’ll adapt as our prospects’ wants adapt,” Jordan stated at an business occasion hosted by Politico earlier this month.