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

© Reuters. Outbreak of the coronavs disease (COVID-19) in Oakland, California

(Reuters) – Southwest Airlines Co (N:) on Thursday warned that travel demand would remain depressed until a vaccine or treatment for COVID-19 becomes available, as it posted a $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 $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 $915 million, or $1.63 per share, for the quarter ended June 30, compared with a profit of $741 million, or $1.37 per share, a year earlier.

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

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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*