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U.S. airlines are preparing for a rebound in summer bookings
after nearly a year in the doldrums as mass vaccination gains
pace and countries ease travel restrictions for vaccinated
travelers.
Southwest said it had seen improvements in leisure passenger
travel demand and bookings for May and June this year, adding
that based on current bookings, leisure fare levels in June are
nearing June 2019 levels.
The company also said it was continuing to see "modest,
consistent improvements" in business passenger demand and
bookings, though it still lagged leisure travel trends.
The company now estimates its average core cash burn, excluding
changes in working capital, to be in the range of $1 million to
$3 million per day in the quarter, compared with its previous
estimation in the range of $2 million to $4 million per day.
Cash burn, a measure that U.S. airlines began providing in 2020
to measure liquidity in light of the pandemic hit, was about $6
million per day in April. The company said operating revenues
for the month performed in line with its expectations.
Southwest added it now expects capacity to increase about 87% in
the second quarter from the year-ago quarter, compared with its
previous forecast of a rise of about 90%, primarily due to
changes in its service plans. (https://bit.ly/3vdNdxa)
The Dallas, Texas-based carrier also raised its estimates for
fuel costs in the second quarter to be between $1.90 and $2.00
per gallon, from its previous forecast in the range of $1.85 to
$1.95 per gallon.
(Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel
and Amy Caren Daniel)
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