Southwest reports biggest ever quarterly loss on virus hit

In this news, we discuss the Southwest reports biggest ever quarterly loss on virus hit.

(Reuters) – Southwest Airlines Co LUV.N reported a third-quarter loss of more than $ 1 billion, the largest on record, while saying it would burn less money in the months to come then that leisure bookings are showing signs of recovery from this year. collapse due to coronavirus.

The company warned Thursday that until a COVID-19 vaccine is widely available, passenger traffic will remain fragile. So far, the industry has failed to secure another $ 25 billion bailout for airlines criticized by the virus outbreak.

“We are urging our federal leaders to adopt an economic relief package that includes a net six-month extension of the Payroll Support Program (PSP) to further protect critical jobs and air travel,” said Gary Kelly, managing director from Southwest.

The airline is forecasting average baseline cash consumption of about $ 11 million per day in the fourth quarter, compared to $ 16 million per day in the third quarter and $ 23 million per day in the second.

Southwest also said it will resume selling all seats available for travel from December 1. The airline is currently blocking the middle seats for social distancing reasons.

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 to profit of $ 659 million, or $ 1.23 per share. , one year earlier.

On an adjusted basis, the company lost $ 1.99 per share. Total operating revenues fell 68.2% to $ 1.79 billion.

Southwest ended the second quarter with cash of $ 15.6 billion.

Report by Sanjana Shivdas in Bengaluru; Edited by Shounak Dasgupta

Original © Thomson Reuters

Originally posted 2020-10-22 12:56:10.

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