Southwest is seeing a modest improvement in August leisure passenger demand, however in a SEC filing the today the carrier warned that year-on-year revenue falls remain significant, and passenger demand and booking trends remain inconsistent leading the firm to cut capacity over the next three months.
Southwest’s preliminary July 2020 operating revenues decreased, year-over-year, in the range of 70 to 75%; capacity decreased approximately 31%, year-on-year; and load factor was approximately 43%; all in line with the carrier's previous estimations.
Based on modest improvements in leisure passenger demand, the Southwest now estimates August 2020 operating revenues to decrease, year-over-year, in the range of 70 to 75%; capacity to decrease approximately 27% year-on-year; and load factor to be in the range of 40 to 45%.
The LCC now estimates third quarter 2020 capacity to decrease in the range of 30 to 35%, year-over-year, compared with its previous estimation of a year-over-year decrease in the range of 20 to 30% and it estimates its October 2020 capacity will decrease in the range of 40 to 50%, year-on-year.