Southwest Airlines to cut more flights, decline CARES Act loan

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Posted at 9:09 AM, Aug 21, 2020
and last updated 2020-08-21 12:09:39-04

For Southwest Airlines Co., demand is getting a little better, capacity will be slashed more than previously thought this quarter and the airline won't take a $2.8 billion loan offered by the U.S. government.

Those were the major takeaways from an investor update Southwest Airlines filed Wednesday morning.

The Dallas-based airline — the largest carrier operating at Phoenix Sky Harbor International Airport — detailed how much revenue and capacity is expected to be down in the third quarter compared to last year.

So far in August, Southwest has seen a "modest improvement" in leisure bookings. Operating revenue is now expected to decline this month 70 percent to 75 percent compared to last year. That's a small improvement from previous guidance in which Southwest projected August revenue to be down 70 percent to 80 percent.

Read more from the Phoenix Business Journal.