Southwest Airlines said in an investor update yesterday that third-quarter unit costs will rise 4%-5% owing mainly to a $25 million charge related to its voluntary employee buyout program. The cost increase is more than double its projected growth in quarterly unit revenue and caused analysts to project lower-than-expected earnings for the LCC in the quarter. JP Morgan's SWA third-quarter earnings estimate was lowered to 20 cents per share from 23 cents previously.

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