U.S. Southwest Airlines warns of another slump in recovery
HOUSTON, Nov. 12 (Xinhua) -- Southwest Airlines headquartered in the U.S. state of Texas said Thursday that gradual improvements in air travel during the last three months stalled in recent weeks.
The Dallas-based company 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."
The update also said that it has reduced its daily cash burn to 10 million U.S. dollars a day after passenger willingness to buy tickets again between August and October and that it still has about 13.6 billion dollars in the bank.
According to the company, its revenue will be down 60 percent to 65 percent in November and December compared to a year ago, while its capacity will be down about 40 percent.
COVID-19 has hugely impacted the U.S. airline industry. Airport passenger tracking data from the Transportation Security Administration shows that recent traveler number was still down more than 60 percent compared to a year ago. Enditem