Southwest Airlines Reports First Annual Loss Since 1972, Posts Loss of $3.1 Billion

By Paul Riegler on 28 January 2021
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Southwest Airlines announced financial results for the fourth quarter and full-year results for the calendar year 2020.

The Dallas-based carrier reported a loss of $3.1 billion for the year.Total operating revenue plunged 64.9% to $2.01 billion.

In addition, the airline posted a $908 million loss for the fourth quarter, compared with a profit of $514 million in the same period in 2019.

Revenue fell 65% to $2.01 billion.

The airline said that current booking trends do not “indicate significant improvement” for the first quarter, and that it hopes to break even for the year.

“While we hope to achieve cash burn break even in 2021, it is wholly dependent upon a substantial rebound in passenger traffic and revenue; and, it is difficult to predict the timing of such a rebound, especially with respect to business travel,” said airline CEO Gary Kelly.

Southwest said its cash burn would average $17 million per day in the first quarter of 2021, versus $12 million per day in the final quarter of 2020.

(Photo: Accura Media Group)

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