Southwest posts US$915 million loss in second quarter, warns of more COVID-19 pain

Southwest Airlines Co on Thursday warned that travel demand would remain depressed until a vaccine or treatment for COVID-19 becomes available, as it posted a US$915 million loss for the second quarter.

FILE PHOTO: Air travelers wear face masks waiting to board a Southwest Airlines flight as the spread of coronavirus disease (COVID-19) continues, at Oakland International airport in Oakland, California, U.S., April 9, 2020.

REUTERS: Southwest Airlines Co on Thursday warned that travel demand would remain depressed until a vaccine or treatment for COVID-19 becomes available, as it posted a US$915 million loss for the second quarter.

Optimism about a post-pandemic rebound in travel has waned as U.S. states scale back reopening plans to tackle another surge of infections in the country.

“Improving trends in revenue and bookings have recently stalled in July with the rise in COVID-19 cases,” Southwest Chief Executive Officer Gary Kelly said in a statement.

The airline said second-quarter average core cash burn was US$23 million per day, and forecast current quarter cash burn to be in line with the second quarter.

Dallas-based Southwest posted a net loss of US$915 million, or US$1.63 per share, for the quarter ended June 30, compared with a profit of US$741 million, or US$1.37 per share, a year earlier.

Excluding items, the loss was US$1.5 billion, or US$2.67 per share.

The airline ended the second quarter with liquidity of US$15.5 billion, and said total operating revenue fell 82.9per cent to US$1.01 billion.

Z24 News

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