Southwest reports biggest ever quarterly loss on virus hit
REUTERS 6:34 AM ET 10/22/2020
Symbol Last Price Change | LUV | 39.84 | 0 (0%) | | QUOTES AS OF 06:30:00 PM ET 10/21/2020 |
(Reuters) - Southwest Airlines Co(LUV) reported a loss of more than $1 billion, its biggest ever, in the third quarter, while saying it would burn less cash in the months to come as leisure bookings show signs of recovery from this year's coronavirus-driven collapse.
The company warned on Thursday that until a COVID-19 vaccine was made widely available, passenger traffic would remain fragile. The industry has so far failed to secure another $25 billion bailout for airlines slammed by the virus outbreak.
"We urge our federal leaders to pass an economic relief package that includes a clean, six-month extension of the Payroll Support Program (PSP) to further protect jobs and crucial air travel," Southwest(LUV) Chief Executive Officer Gary Kelly said.
The airline forecast fourth-quarter average core cash burn of about $11 million per day, compared with $16 million per day in the third quarter and $23 million per day in the second.
Southwest (LUV) also said it would resume selling all available seats for travel from Dec. 1. The airline is currently blocking middle seats for social distancing.
The Dallas-based company reported a net loss of $1.16 billion, or $1.96 per share, in the third quarter ended Sept. 30, compared with a profit of $659 million, or $1.23 per share, a year earlier.
On an adjusted basis, the company lost $1.99 per share. Total operating revenue fell 68.2% to $1.79 billion.
Southwest (LUV) ended the second quarter with liquidity of $15.6 billion.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shounak Dasgupta) |
