Published: Wednesday, 11 August 2021 16:06
Although many airlines have expressed optimism regarding a return to sustained profitability, the Delta variant will likely stymie their rebound. Especially if it isn’t contained effectively. — Rashaad Jorden
Southwest Airlines Co became the first big U.S. carrier to warn of a hit from the more infectious Delta variant of the coronavirus on Wednesday, saying it may not be profitable in the current quarter.
Shares of the company were down 2% in premarket trading as it said the spread of the more infectious variant had hit bookings and increased cancellations in August.
The warning marked a u-turn from the airline’s statement last month that it would remain profitable for the rest of 2021. It also weighed on shares of rivals Delta Airlines Inc, American Airlines Group Inc and United Airlines Inc, which lost more than 1% each.
The rapid surge in cases of the variant has pushed U.S. hospitalizations to a six-month high, prompting governments in areas such as Hawaii to re-impose restrictions and threatening a recovery in travel demand that helped airlines bounce back.
Southwest also forecast its third-quarter operating revenue to be down 15% to 20% versus 2019, a cut of about three to four points from its prior outlook issued just three weeks ago. (https://bit.ly/3s94erL)
But the airline maintained its unit cost outlook for the quarter.
Last week, Frontier Airlines also lowered its third-quarter forecast and warned the Delta variant was hurting demand.
(Reporting by Abhijith Ganapavaram and Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila, Aditya Soni)
Copyright (2021) Thomson Reuters. Click for restrictions
Virgin Galactic postpones SpaceShipTwo flight, begins maintenance period
Волошина Екатерина Просмотров: 64
Orbit Fab signs technology sharing agreement with U.S. Air Force Research Laboratory
Волошина Екатерина Просмотров: 61
Space Force recruiters pitch military service to warriors and dreamers
Волошина Екатерина Просмотров: 57
Maxar files protest over Space Development Agency’s satellite procurement
Волошина Екатерина Просмотров: 53
RUAG Space: Ten times more accurate satellite positioning
Волошина Екатерина Просмотров: 28
‘We go together’: US Space Force chief seeks deeper space cooperation with South Korea
Волошина Екатерина Просмотров: 24
NASA investigating issue with Lucy solar array
Волошина Екатерина Просмотров: 22
NASA expects vaccination mandates to have little impact on Artemis 1 preparations
Волошина Екатерина Просмотров: 21
Best 4K TV for 2021
Рустам Гулов Просмотров: 111
Best phones under $500 2021: iPhone SE, Galaxy A52 5G, Pixel and more
Рустам Гулов Просмотров: 93
The best 65-inch TV for 2021
Рустам Гулов Просмотров: 91
MDA highlights speedy tasking, broad coverage of Radarsat-2 follow-on
Волошина Екатерина Просмотров: 80
Has no connect to show!