Southwest Airlines, which has been operating its full flight schedule this week but finding few passengers, is considering cutbacks and has halted delivery of aircraft from Boeing Co (NYSE:BA - news), the Wall Street Journal reported in its online edition on Friday.

``If [passenger] loads don't improve, we may need to pull back our schedule probably in October,'' Chief Financial Officer Gary Kelly said. ``I don't see us continuing for 60 to 90 days at this load factor.''

Southwest, the nation's seventh-largest carrier, is losing ``millions of dollars a day'' as its passenger loads have plummeted following last week's attacks on the U.S., the article said.

The airline has continued to operate 2,800 flights a day, its normal flight schedule, as the number of passengers has been inching back up this week, the report said. But the number still remains light, said Kelly, adding Southwest can absorb the losses they incurred last week and this week because of its cash balance of more than $1 billion.

The company is in discussions with Boeing about deferring delivery of new aircraft, Kelly said.

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