A Southwest Airlines Boeing 737-73V jet leaves Midway International Airport in Chicago, Illinois on April 6, 2021.
Kamil Krzaczynski | AFP | Getty Images
Southwest Airlines The demand for travel continues to improve as booking patterns appear “pretty typical” for the next month as the effects of Covid-19 in the US wear off.
The Dallas-based airline said recreational prices will move close to 2019 levels over the next month, although a shortage of business travelers will still keep average ticket prices under control this quarter.
But the southwest has also slacked off the rise in jet fuel costs for the quarter that could weigh on the bottom line.
The airline will hold an annual general meeting at 11:00 a.m.CET.
According to Southwest, sales in June are expected to decrease by 20% to 25% compared to the same month last year 2019. This is an improvement over this month, when sales are expected to be up to 40% lower than two years ago.
“The demand for passengers and the booking trends remain primarily leisure-oriented and regionally inconsistent,” said Southwest in a press release. “Despite recent improvements in leisure demand, the company remains cautious and continues to plan multiple fleet and capacity scenarios.”
Southwest expects capacity to grow 126% year over year in May, but 18% year over year. For June, an increase of 67% compared to 2020 and 6% compared to 2019 is forecast.
The low-cost carrier reiterated that it is expected to hit balanced core cash flow in June 2021 by increasing its core cash burn from a previous estimate of $ 2-4 million per year to an average of $ 1-3 million in the second quarter -Dollars a day lowered day.
Southwest’s shares fell 3.4% in morning trade during a broad market sell-off.
Airlines have added flights and resumed their recruitment plans to cater to returning travelers this spring and summer. Southwest plans to resume hiring flight attendants in the coming weeks, CNBC reported this month.