Airlines have been the among the worst hit by the coronavirus pandemic, which brought global travel to a virtual standstill and a $10 billion collective monthly cash burn for U.S. airlines, which have slashed their capacity.
With signs of improvement, Southwest — with a more domestic focus than its large peers — is adding some flights back to its network in June, which will see an overall annual capacity decline of between 45% and 55%, compared with a decline of 60% to 70% in May.
United Airlines Holdings Inc, which has greater international exposure, said its June capacity would still be down by about 90% year-on-year, and 75% in July.
Southwest said its daily cash burn rate was slowing to the low-$20 million range in June from $30 million to $35 million in the overall second quarter.
United said its total adjusted capital expenditure for 2021 would be close to $2 billion versus around $4.5 billion this year, falling to below $500 million in 2022 when it does not expect to take delivery of any new aircraft. Chicago-based United is taking delivery of aircraft that are fully financed this year and next.
© Reuters, aero.uk | Image: Southwest Airlines | 20/05/2020 08:12