Tags: southwest air | blocking | middle | seats

Southwest Air to Keep Blocking Middle Seats Through November

Southwest Air to Keep Blocking Middle Seats Through November
(Ajdibilio/Dreamstime)

Wednesday, 16 September 2020 09:39 AM

Southwest Airlines Co. said on Wednesday it will continue to limit the number of seats sold on each flight, allowing middle seats to remain open through November, and expects its daily cash burn to slow in the third quarter as bookings improve.

Southwest (LUV), which was previously blocking middle seats through October, said bookings had picked up in August and September from a low point in July but remain primarily leisure-oriented and inconsistent by region.

The U.S. airline said it sees a daily cash burn of $17 million in the third quarter versus an estimated $20 million previously and continues to plan for multiple demand scenarios in terms of fleet and capacity.

Southwest still plans to cut its third-quarter schedule by 30% to 35% from last year.

The airline, which has one of the strongest financial positions among U.S. peers, said it does not currently plan to utilize its loyalty program should it need to secure additional financing.

U.S. majors Delta Air Lines, United Airlines and American Airlines have all pledged their loyalty programs for financing.

Southwest had cash and short-term investments of about $14.8 billion as of Sept. 15.

The budget carrier said operating revenue could decline as much as 75% in October, deeper than an estimated 65% to 75% decline in September.

© 2020 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
Companies
Southwest Airlines Co. said on Wednesday it will continue to limit the number of seats sold on each flight, allowing middle seats to remain open through November
southwest air, blocking, middle, seats
214
2020-39-16
Wednesday, 16 September 2020 09:39 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved