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

Costa Rica Court Orders Urgent Regulation of Tuna Fishing Law

Costa Rica's Constitutional Court has stepped in to push the government on a long-delayed tuna fishing law. The court partially backed an appeal from...

Riu Guanacaste Hotel Reopens in Costa Rica After Renovation

The Riu Guanacaste hotel in Costa Rica has reopened after a complete renovation, welcoming guests back to its beachfront spot on Matapalo Beach. The...

Venezuela Tensions Rise After U.S. Strike on Alleged Narco Vessel

Pentagon chief Pete Hegseth announced Friday a new strike in the Caribbean off Venezuela’s coast against an alleged narco-boat, leaving 4 dead. “Following President...

Costa Rica Faces a Must-Win for a Place in 2026 World Cup

Costa Rica's national soccer team faces a defining stretch in their bid to reach the 2026 World Cup. With just two points from their...

Costa Rican Congressman Faces Sexual Abuse Allegations from 2006

Fabricio Alvarado, a sitting congressman and presidential hopeful for the New Republic Party, now contends with a formal complaint accusing him of sexually abusing...

Costa Rica Proposes Date for Chaves Immunity Review

Costa Rica's lawmakers took a step forward today in addressing the latest push to strip President Rodrigo Chaves of his legal protections. The Legislative...
spot_img
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