United Kingdom
United States
Asia Pacific
Southwest Airlines braced for $300 million hit from coronavirus
Impact from the coronavirus outbreak may cost Southwest Airlines up to $300 million in lost revenue.
It has placed a $200-300 million range on the impact to first quarter operating income.
The airline says it had good booking volume which had matched its earlier guidance but that has slumped ‘in recent days.’
Travel demand has now significantly declined and travelers are cancelling trips.
This is ‘assumed to be attributable to concerns relating to reported cases of COVID-19,’ Southwest said in a filing.
In an interview, CEO Gary Kelly likened it to the rapid decline in demand after 9/11.
It expects unit revenue to decline by up to 2%, well down from its guidance of 3.5-5.5% growth.
Southwest doesn’t fly to any coronavirus hotspots but the concerns about air travel are hitting the home market.
US airlines have started trimming domestic schedules as the appetite for travel has significantly waned, ahead of the busy spring break season.
United Airlines and JetBlue have both announced cuts to their US schedules and more airlines could follow.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Dozens fall ill in P&O Cruises ship outbreak
Woman dies after getting ‘entangled’ in baggage carousel