In a statement, Gary Kelly, the Chief Executive Officer of Southwest Airlines Co stated, he expects a “brutal low-fare” environment in the U.S. aviation sector once coronavirus-induced restrictions are eased. “There are far more airplane seats right now, and there will be for some time, than there are customers,” said Kelly. “Our low-cost philosophy, strategy and structure will serve us very well.”
The coronavirus pandemic, which emerged from Wuhan, China, has brought global air travel to a virtual halt, leading to an an unprecedented number of flight cancellations globally as a result of which the airlines industry suffered massive losses.
As a means to slow down the cash burn and preserve precious cash, most global airline operators have cut 90% of their flights and are gradually adding flights back to their schedules as demand for air travel slowly picks up.
References: reuters.com
