No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsSouthwest Airlines warns of hit from latest Covid-19 surge

Southwest Airlines warns of hit from latest Covid-19 surge

Citing the drag from the Delta variant of the coronavirus, Southwest Airlines on Wednesday warned of weaker revenues in the current quarter as bookings slow.

Southwest, a domestic-focused US carrier, said its third-quarter revenue outlook had “worsened by an estimated three to four points” compared with the one it released last month.

“The Company has recently experienced a deceleration in close-in bookings and an increase in close-in trip cancellations in August 2021, which are believed to be driven by the recent rise in COVID-19 cases associated with the Delta variant,” Southwest said in a securities filing.

Southwest projected that August revenues would be down 15 to 20 percent compared with the 2019 period. It previously estimated a decline of 12 to 17 percent.

On the positive side, Southwest said travel demand for the Labor Day weekend, which traditionally marks the end of summer, “remains healthy.”

The new forecast highlights the fluid impact of Covid-19, which has seen a resurgence in infections in recent weeks in Florida, Texas and other states with low vaccination levels.

On July 22, Southwest Chief Executive Gary Kelly had said there was “no indication anywhere” of an impact from the Delta variant on customer behavior.

But Kelly told analysts on a conference call that he was “worried” about such an impact, adding that the carrier needed to be “very nimble and very flexible” in case consumers restrict travel due to the virus.

Shares of Southwest were volatile Wednesday, opening lower but rising 0.2 percent to $51.21 in mid-morning trading.

Southwest flies to both of Costa Rica’s major airports (SJO and LIR) with routes from Houston, Denver and the Washington, D.C. area.

Trending Now

Hondurans March to Mark 2009 Coup as Election Battle Heats Up

Thousands of government supporters marched Saturday in the capital of Honduras to commemorate the anniversary of the 2009 coup that ousted then-leftist President Manuel...

Guatemala Offers Asylum to Nicaraguan Migrants Deported by U.S.

Guatemalan President Bernardo Arévalo announced on Friday that his country will grant asylum to Nicaraguan migrants deported by the United States who do not...

Costa Rica to Launch Electric Air Taxis for Sustainable Travel in Guanacaste

Costa Rica is poised to revolutionize its transportation landscape with the introduction of electric air taxis, offering a sustainable alternative to traditional ground travel...

2025 Gold Cup: Honduras Advances After Dramatic Shootout, Mexico Ends Goal Drought

Honduras, with a surprising and dramatic penalty shootout victory over Panama, and Mexico, with a lackluster win against Saudi Arabia, advanced Saturday to the...

Celso Gamboa Allegedly Ran Drug Ring with Costa Rican Government Ties

Celso Gamboa, once Costa Rica’s Security Minister and a Supreme Court judge, now faces extradition to the U.S. for leading a major cocaine trafficking...

Costa Rica Joins U.S. Global Entry, Easing Travel for Tourists

Costa Rica took a big step forward, by officially joining the U.S. Global Entry program, a move set to make travel smoother for Costa...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica