US’ Southwest Airlines warns of another slump in recovery
The Texas-headquartered Southwest Airlines has said that gradual improvements in air travel during the last three months have stalled in recent weeks.
On Thursday, the Dallas-based airline said in an update to investors that “while the company expected the election to impact trends, it is unclear whether the softness in booking trends is also a direct result of the recent rise in Covid-19 cases”, reports Xinhua news agency/
The update also said that the company has reduced its daily cash burn to $10 million a day after passenger willingness to buy tickets again between August and October and that it still has about $13.6 billion in the bank.
According to the company, its revenue will be down 60 per cent to 65 per cent in November and December compared to a year ago, while its capacity will be down about 40 per cent.
The raging pandemic has hugely impacted the US airline industry.
Airport passenger tracking data from the Transportation Security Administration shows that the recent number of travellers was still down more than 60 per cent compared to a year ago.