Southwest continues to experience ‘fairly typical’ booking patterns for summer 2021

    Southwest Airlines announced (08-Jun-2021) the following updated guidance regarding its financial and operational trends:

    • May-2021: Operating revenues performed in line with expectations and represented a sequential increase compared with Apr-2021, driven primarily by improvements in leisure passenger traffic and fares;
    • May-2021 business revenues were down approximately 77% compared with May-2019, which represented continued sequential improvements compared with down 80% in Apr-2021, down 85% in Mar-2021 and down 90% in Feb-2021;
    • Based on current bookings, the company continues to expect another sequential improvement in operating revenues in Jun-2021 compared with May-2021, also driven primarily by expected improvements in leisure passenger traffic and fares;
    • Jun-2021: Operating revenues now expected to be at the “better end” of its previous guidance range;
    • Based on current bookings, leisure fare levels in Jun-2021 and Jul-2021 are comparable with 2019 levels;
    • The airline continues to experience “fairly typical” booking patterns for summer 2021 travel. It also continued to experience “modest, consistent” improvements in business passenger demand and bookings;
    • Business travel demand continues to “significantly lag” leisure trends and is expected to continue to have a negative impact on close in demand and average passenger fares in 2Q2021;
    • The airline continues to expect 2Q2021 capacity to increase approximately 87% year-on-year and decrease approximately 16% compared with 2Q2019;
    • Aug-2021: Capacity expected to increase approximately 39% year-on-year to be comparable with Aug-2019. Passenger demand and booking trends remain primarily leisure oriented;
    • Actual flown capacity may differ materially from currently published flight schedules or current estimations;
    • The airline expects 2Q2021 operating expenses, excluding fuel and oil expense, special items and profit sharing, to increase in the range of 10% to 15% year-on-year. [more – original PR]
    We use cookies and other web technologies to collect anonymous data about the usage of this website so that we can better serve your needs. If you'd like more information on this data please see our Privacy Settings. By clicking "I Agree" below, you are agreeing to allow us to collect additional usage data.