Southwest says it could take more than 5 years for business travel to get back to normal, as the airline reports its first loss since 2011 because of the coronavirus
Southwest Airlines CEO Gary Kelly said on Tuesday that business travel could take more than five years to return to 2019 levels, as the airline reported its first quarterly loss since 2011 amid an "unprecedented" and "breathtaking" crisis for the global airline industry.
Southwest predicts "no material improvement in air travel trends" this spring, according to a filing with the Securities and Exchanges Commission, saying it expects revenue to fall as much as 95% in May. It added that it is "unable to reasonably estimate trends beyond May 2020." Airlines and the broader travel industry have been hit particularly hard by the COVID-19 pandemic and associated financial crisis, as shelter-in-place orders, travel restrictions, and corporate travel suspensions have. Customers have also refrained from booking travel in advance due to uncertainty over when restrictions will be loosened, and whether a so-called "second wave" outbreak will force them to be tightened again.
As the industry looks towards ways to convince passengers to fly again, Kelly said the airline would consider options such as leaving empty seats on planes or offering masks to passengers.While analysts and airline officials have suggested that leisure travel may return before corporate travel, Kelly said it was hard to know when an uptick would resume.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus live updates: Ex-FDA chief still sees 'pervasive spread' in US, VW restarts productionThere’s a chance New Jersey schools could reopen this school year, Gov. Phil Murphy says. But there will be a “new norm.”
Read more »
Skin rashes may be symptom of coronavirus, scientists sayResearchers in Italy first reported skin problems as a potential COVID-19 symptom in March.
Read more »
Trump classified briefings warned about COVID-19: report - Business InsiderTrump regularly skips reading through daily briefings and rarely pays attention when officials give him oral summaries of the information.
Read more »
L.A. Lakers Returning $4.6 Million In Coronavirus Federal LoansThe L.A. Lakers are giving back $4.6 million in federal loan money aimed to help small businesses affected by COVID-19, the team announced.
Read more »
Wedding license office reopens in ‘marriage capital’ VegasVegas office is back in business for marriage licenses. Meanwhile, Nevada reported nearly 4,700 COVID-19 cases and at least 206 deaths.
Read more »
S&P 500 gains modestly, warning of higher COVID-19 deaths curb recovery hopesThe bellwether S&P 500 index inched higher on Tuesday, with fresh warnings of a possible higher death toll from the new coronavirus and plunging consumer confidence curbing investor hopes for a near-term economic revival as states began to relax restrictions enacted to halt the pandemic's spread.
Read more »