Shares of Southwest Airlines (LUV) are in focus in pre-market trading after the company cut its capacity and other guidance for the third quarter to reflect the impacts from the recent hurricanes and earthquakes.

OPERATIONAL UPDATE: Southwest Airlines said in a regulatory filing this morning that it has canceled about 5,000 flights through September 27 due to the impacts from recent natural disasters, which includes hurricanes Harvey, Irma and Maria, as well as the earthquake in Mexico. The carrier currently expects a negative impact to its Q3 operating revenues of approximately $100M as a result.

UPDATED GUIDANCE: Southwest expects Q3 available seat miles, or capacity, to increase about 3% from the year-ago period. The company expects Q3 operating revenue per available seat mile, or RASM, to be flat to down 1%. Operating expense per available seat mile, or CASM, is expected to be up 3%-4%. The company is still expecting fuel costs of $2.00 to $2.05 a gallon, based on derivative contracts and market prices as of September 22.

WHAT'S NOTABLE: At the Cowen and Company's 10th Annual Global Transportation Conference on September 6, Southwest executive vice president and chief financial officer Tammy Romo estimated a $40M-$60M negative impact from Hurricane Harvey. She forecast Q3 RASM down 1% to up "slightly" year-over-year, CASM up 2%-3% from the year-ago period and capacity growth of 3.5%-4.5% year-over-year. Two days later, Southwest reported August traffic up 5.3% and reiterated that it expected Q3 RASM to be down 1% to slightly up from the year-ago period.

PRICE ACTION: Southwest Airlines is fractionally lower in premarket trading.

OTHERS TO WATCH: Peers in the space include JetBlue (JBLU), Delta (DAL), American Airlines (AAL) and United (UAL).