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Southwest Airlines Will Survive the Coronavirus

Southwest Airlines, currently the most valuable US carrier by market capitalization, has seen its stock hit hard during the coronavirus outbreak.  Executives report a $94 million loss in the quarter that ended on March 31st. This is the company’s biggest first quarterly loss since 2011.

Of course, Southwest isn’t the only airline that’s been hit hard. According to the TSA, air travel demand is down around 92% across the board. However, for Southwest, the coronavirus is a black mark on an otherwise impressive streak of profitability over the past 47 consecutive years.

CEO Gary Kelly has also warned of the possibility that Southwest will be “a dramatically smaller airline” if things do not improve. But, things are looking up. On Tuesday, Southwest’s new bookings began to outpace cancellations, signaling a turning point. And, while recovery will undoubtedly be a bumpy ride, things are looking good for Southwest so far.

8 Comments
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nunusguy June 1, 2020

Got back into LUV this morning and will probably add to that position soon as I too believe that Southwest will survive this challenge though as the CEO says there may be some very significant changes to the carrier in the near term.

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edgewood49 May 26, 2020

SWA has a long history of solid management far exceeding the other majors here in the US so its no surprise that they will successfully come out on the other side of this mess. What will be interesting is see how AA does. I actually think that DL and UA will be survive in reasonably good shape.

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Seattlenerd May 26, 2020

Please lose the apostrophe in the headline and make it correct ("Southwest Airlines" not "Southwest Airline's"). The airline has no apostrophe in its name, and its will is not an issue.

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There is no apostrophe in Southwest Airlines.

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dogcanyon May 26, 2020

It's Southwest Airlines not Southwest Airline’s. I'm the English language we do not add an apostrophe to make the plural form of a noun. Most people learn this in third grade.