Southwest Airlines Drops Revenue Estimates $200M-$300M Because Of Coronavirus
DALLAS (CBSDFW.COM) - The coronavirus is having a negative impact on Dallas-based Southwest Airlines profits.
Southwest cut its revenue expectations because of a decrease in demand for airline tickets and an increase in trip cancellations -- believed to be due to the spread of COVID-19.
In a report to the Securities and Exchange Commission Southwest said --
"Based on these recent revenue trends, which are currently expected to impact the remainder of March 2020, the Company now estimates its first quarter 2020 operating revenues to be negatively impacted."
The airline estimates its revenue for the quarter will drop between $200 and $300 million. The company's total operating revenue for the first quarter last year was $5.15 billion.
Southwest stock was down about 5% in Thursday trading.
Executives from Southwest, Fort Worth-based American Airlines, United Airlines and JetBlue Airways met with President Donald Trump on Wednesday to discuss concerns about the impact the virus was having on travel.