Southwest Airlines:”New passenger bookings outpaced trip cancellations” – Idaho Reporter

LUV

Southwest Airlines:”New passenger bookings outpaced trip cancellations”

In the most recent SEC filing on Tuesday, Southwest Airlines Co (NYSE: LUV) announced its guidance regarding Q2 2020 financial and operational trends.

Seems like times are changing as Southwest :”has recently experienced a modest improvement in passenger demand, bookings, and trip cancellations, resulting in month-to-date net positive bookings through May 18, 2020, where new passenger bookings outpaced trip cancellations.” This is a good news because this is “a reversal in the net negative booking trends experienced during the majority of March and April 2020, where trip cancellations outpaced new passenger bookings”.

Other key takeaways from this SEC filing are:

-For May 2020, operating revenues are currently estimated to decrease, year-over-year, in the range of 85 to 90 percent.

-Capacity is estimated to decrease in the range of 60 to 70 percent, YoY.

-Load factor is estimated to be in the range of 25 to 30 percent.

Southwest continues to burn approximately between $30 million to $35 million per day while they expect daily core cash burn to be in the low-$20 million range in June 2020.

Southwest Airlines Co (NYSE: LUV) stock price jumped 13.49% on Monday and it is expected to go up even more today. Some analysts say that Southwest will one of the companies that will survive this crisis and be even bigger once everything is finished while others beg to differ.

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