US carrier Southwest Airlines said today it expects cash burn in the third quarter to slow as bookings improve in August from a pandemic-driven grounding of flights worldwide.
But the US airline also flagged inconsistent demand and booking trends.
Southwest, which has decided to not participate in the US government's secured loan programme, said it has taken actions to bolster its liquidity and, if required, it could secure additional financing at favourable terms.
The company said it now expects current-quarter cash burn to be about $20m a day, compared with its prior estimate of about $23m a day.
It now expects August 2020 operating revenue to fall between 70% and 75% from a year earlier compared with its earlier estimate of a decline of 70% to 80%.
The company also said its third-quarter capacity would likely slump between 30% and 35%, compared with its previous expectation of a 20% to 30% drop.
