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Southwest sees biggest-ever quarterly loss on coronavirus

Southwest sees biggest-ever quarterly loss on coronavirus

Mubasher: Southwest Airlines Co lost more than $1 billion during the third quarter (Q3) of 2020, its biggest loss ever, as a result of the coronavirus-driven collapse, Reuters reported on Thursday.

The Dallas-based company reported a net loss of $1.16 billion, or $1.96 per share, in Q3-20, compared with a profit of $659 million, or $1.23 per share, a year earlier.

The company warned that until a COVID-19 vaccine was made widely available, passenger traffic would remain fragile. So far, the industry has failed to secure another $25 billion bailout for airlines slammed by the virus outbreak.

The airline expected fourth-quarter average core cash burn of around $11 million per day, compared with $16 million per day in Q3 and $23 million per day in Q2.

Southwest, which ended the second quarter with liquidity of $15.6 billion, also said it would resume selling all available seats for travel from 1 December. The airline is currently blocking middle seats for social distancing.