Another Airline Trims Q3 Guidance as Delta Variant Hurts Travel Demand
When U.S. airlines released their second-quarter earnings results in July, they presented bullish outlooks for the third quarter. While U.S. COVID-19 case numbers had already begun to rise steeply by the second week of July, airlines indicated that the demand recovery that had begun in early 2021 showed no signs of slowing.
This blasé attitude lasted just a few short weeks. As more people began to recognize the increased risk of disease transmission associated with the Delta variant, booking activity slowed again and flight cancellations ticked up. This forced Southwest Airlines (NYSE: LUV) to cut its third-quarter guidance last month. On Thursday, West Coast-focused airline Alaska Air (NYSE: ALK) followed suit.
Image source: Alaska Airlines.
Source Fool.com
