Southwest Airlines executives see signs that travel demand may have bottomed out, but are bracing for a slow, bumpy recovery that will require substantial flexibility in everything from short-term flight schedules to the U.S. domestic giant’s long-term fleet strategy.
Southwest Airlines chairman and CEO Gary Kelly pledged the company would “exhaust all other efforts” before shrinking its workforce but cautioned such reductions may eventually be needed amid the extensive downturn caused by the COVID-19 pandemic.
Southwest Airlines has said it will slash its June flight activity by around 50% year-over-year to contend with the demand drop associated with the COVID-19 pandemic.
Southwest Airlines announced plans to trim capacity by 20% in April and May, citing a “dramatic decline” in net bookings caused by the COVID-19 pandemic and ensuing government travel restrictions.
Southwest Airlines pilots will go through simulator sessions as part of their preparation to fly the Boeing 737 MAX when the model is cleared to return, CEO Gary Kelly confirmed Mar. 5.
Southwest Airlines is projecting a $200-300 million first-quarter operating-revenue shortfall due to a sudden dip in bookings that the airline is linking to COVID-19.
