Southwest says bookings outpace cancellations in May
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FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California, U.S., March 26, 2019. REUTERS/Mike Blake/File Photo
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(Reuters) - Southwest Airlines Co (NYSE: LUV) said on Tuesday it recorded positive bookings on a net basis so far this month as passenger reservations outpaced trip cancellations, helping the company slow its cash burn rate.
Airlines have been the among the worst hit by the coronavirus crisis, which brought travel to a virtual standstill around the world.
Southwest said although it continues to estimate its average daily core cash spending to be in range of $30 million to $35 million in the second quarter, June daily cash burn rate would slow to low-$20 million range.
"The company has also recently experienced a modest improvement in passenger demand and bookings in June 2020," Southwest said in a regulatory filing.
The U.S. carrier said it expects June capacity to fall between 45% and 55% from with a year ago, compared with a decline of 60% to 70% in May capacity. (https://bit.ly/3cK8UvT)
(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)
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