Amidst Coronavirus, Southwest Airlines Posts First Loss Since 2011
A Southwest aircraft at LaGuardia
Southwest Airlines announced financial results for the first quarter of 2020.
The Dallas-based airline posted its first quarterly loss since 2011 and predicted “ “no material improvement in air travel trends” for the spring amidst the coronavirus pandemic.
Southwest reported a first-quarter loss of $94 million on revenue of $4.23 billion, an 18% decline year-over-year decline.
The carrier announced a public stock offering of 55 million shares, worth around $1.6 billion at Monday’s closing price, and also said it plans to issue $1 billion in additional debt as it attempts to shore up its finances.
In addition, the airline said it is reviewing its outstanding aircraft orders given the significant drop in demand for air travel.
“In light of the current environment, we are in the process of revising our aircraft order book with Boeing and will continue partnering with Boeing on a sensible delivery schedule,” said the airline’s CEO, Gary Kelly.
(Photo: Accura Media Group)
