Southwest Airlines on Wednesday mentioned it has logged a “modest” enchancment in bookings through October, serving to it trim its day by day cash burn estimate for this quarter by $Three million to an anticipated $17 million.
Despite the uptick in bookings, the Dallas-based airline mentioned in a submitting that it expects income to drop 65% to 75% in October and capability to be down 40% to 50% from the identical month final 12 months because the coronavirus pandemic continues to harm journey demand. It forecast November capability to drop 35% to 40% from 2019.
“Passenger demand and booking trends remain primarily leisure-oriented and inconsistent by region,” Southwest mentioned. “The Company remains cautious in this uncertain demand environment and continues to plan for multiple scenarios for its fleet and capacity plans.”
Southwest mentioned it could prolong a coverage that leaves middle seats open on its flights, aside from vacationers in the identical get together, through the tip of November, an effort to calm vacationers nervous about flying in a pandemic and higher compete in the beginning of the end-of-year holidays. Delta Air Lines, for instance, final month mentioned it could restrict capability on flights through Jan. 6.
Southwest shares had been up greater than 3% in morning buying and selling.