Southwest Airlines says the delta variant of Covid-19 is hurting bookings and sparking trip cancellations.
Southwest is second airline in less than a week to warn about the impact of the delta Covid variant on bookings.Weaker bookings and higher cancellations will weigh on results this month, Southwest said.A Southwest Airlines Boeing 737-73V jet departs Midway International Airport in Chicago, Illinois, on April 6, 2021.lowered its revenue and profit forecast on Wednesday, blaming the delta variant for weaker bookings.
It said September revenue will likely be down 15% to 25% from 2019, its first estimate for the month. Southwest said it was profitable in July, but the impact of the rapidly spreading variant in August and September "will make it difficult" for the company to turn a profit in third quarter without counting federal aid that's provided some temporary relief in covering its labor costs.
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