Southwest issues profit warning over Delta variant traveler concerns

Sunday, 11 Aug, 2021 0

Southwest Airlines has a problem with Delta – but it is not the Atlanta based rival carrier.

Southwest is increasingly fearful the surging Delta variant will wipe out any third quarter profit.

It became the first major US carrier to issue a profit warning blaming the highly infectious Delta variant which has impacted bookings, it said.

Only a month ago the airline was in upbeat mood, predicting it would be profitable for the rest of the year.

It estimates third-quarter operating revenue will be down about 20% on 2019 levels.

CEO Gary Kelly said that the airline was profitable in July but this could be wiped out by negative effects of weaker travel demand in August and September.

Not only are booking volumes weakening for the remainder of the summer season but trip cancellations are increasing.

"The company has recently experienced a deceleration in close-in bookings and an increase in close-in trip cancellations in August 2021, which are believed to be driven by the recent rise in Covid-19 cases associated with the Delta variant," Southwest said in a filing.

below social share icons

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.

The Florida Keys and Key West is a 126 mile long string of Islands connected to South Florida by the...

In 2024, The Red Sea will be ready to welcome 300,000 guests in line with the completion of 16 hotels...

AXA Assistance specializes in best-in-class cost containment, health and travel services. Over 60 years of experience combined with a US and...

ITB Asia, Asia’s Leading Travel Trade Show, is an annually held B2B trade show and convention for the travel industry; it is designed...

The Polish Tourism Organisation (Polska Organizacja Turystyczna – POT) is one of several dozen national tourism organisations operating in the...

We are a small-group adventure travel operator offering more than 750 tours in 100 countries, on all seven continents. Our...

Why choose Titan Travel? There are some great travel companies out there – so why Titan? Well, we’re one of...

A state like no other. A place known for togetherness, celebration and happiness. In Louisiana, we call it “joie de...

Offering the most powerful portfolio in the industry, our 30 brands and 8,000+ properties across 139 countries and territories give...

Why Avalon Waterways: Happiness flows on an Avalon river cruise. From Asia to South America and Europe to the Nile,...

Babble is a leading technology business that is reimagining how we do work. Founded in 2001, the company works with...

If you’re thinking of cruising, there’s a very good chance you’re considering a Carnival cruise. Growing since our founding in...

The Mexico Tourism Board serves as the driving force behind Mexico’s global appeal, orchestrating targeted marketing campaigns to showcase the...

Family-owned Olympic Holidays has been arranging holidays to Greece, the Greek islands and Cyprus for more than half century. The company is unrivalled...

Chargebacks911 offers scalable solutions that are customized for any business of any size in any industry. With the flexibility to...

Air Transat is Canada’s number one leisure airline. It flies to some 60 international destinations in more than 25 countries...

Atout France guides and supports the French regions with their development strategy and helps set up investment projects in order...

ECOMMPAY is an international payment service provider and direct bank card acquirer, engineering bespoke payment solutions for clients worldwide. Our...