Southwest Airlines Slashes Guidance as Bookings Slow
Just a few weeks ago, U.S. airlines were flying high, boasting about a strong demand recovery. Indeed, leisure travelers have returned to the skies in massive numbers over the past couple of months, particularly in the domestic market and nearby international destinations. During July, passenger throughput at TSA checkpoints tripled year over year and declined just 20% compared to July 2019.
Unsurprisingly, though, the rapid spread of the delta variant has started to dent demand. That led Southwest Airlines (NYSE: LUV) to reduce its third-quarter guidance this week.
U.S. COVID-19 case counts began to rise precipitously in early July, due to the rapid spread of the extremely contagious delta variant. Hospitalizations for COVID-19 surged starting around the middle of the month.
Source Fool.com
