Southwest Airlines Co. trimmed its outlook for burning cash this quarter to about $20 million a day, citing improved leisure demand in August and September amid the coronavirus pandemic.
The carrier previously expected to burn an average of $23 million a day in the third quarter. “Recent modest improvements in revenue trends” were the primary reason for the improved forecast, Southwest said in a regulatory filing Wednesday.
Keeping cash losses under control has become critical for airlines since demand collapsed as the pandemic spread in late March and April and requests for refunds outweighed new sales at carriers worldwide. Southwest’s revised outlook could help the airline meet its goal of breaking even by year-end.
Southwest rose 2.6% to $35.04 at 9:39 a.m. in New York. The shares dropped 37% this year through Tuesday, the best performance on an S&P 500 index of the five biggest U.S. carriers.
Dallas-based Southwest also