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Southwest Airlines CEO sees low-fare environment when traffic returns

Published 05/29/2020, 06:32 PM
Updated 05/29/2020, 06:35 PM
© Reuters. Southwest Airlines jets are parked at Baltimore Washington International Airport in Baltimore, Maryland

© Reuters. Southwest Airlines jets are parked at Baltimore Washington International Airport in Baltimore, Maryland

(Reuters) - Southwest Airlines Co (N:LUV) Chief Executive Officer Gary Kelly said on Friday he expects a "brutal low-fare" environment when traffic returns after coronavirus-induced restrictions ease.

"There are far more airplane seats right now, and there will be for some time, than there are customers," he said in a video message.

"Our low-cost philosophy, strategy and structure will serve us very well."

The COVID-19 pandemic has brought air travel to a virtual halt, leading to an unprecedented number of flight cancellations globally and resulting in airlines booking hefty losses.

© Reuters. Southwest Airlines jets are parked at Baltimore Washington International Airport in Baltimore, Maryland

Airlines have been operating about 90% fewer flights than normal but they are gradually adding flights back to their schedules as demand is starting to pick up.

Latest comments

Southwest has low price if u fly w luggage. Otherwise, nobody can beat spirit or jetblue. People r affraid to fly now.
No kidding, everyone is broke.
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