Originally Posted by
Balker
Southwest said it will "soon" reduce flight schedules, which will reduce capacity by at least 20% from April 14 to June 5, and will continue to evaluate further flight schedule cuts, it said. Southwest is implementing a hiring freeze and offering voluntary leave, "aggressively evaluating all capital spending, discretionary spending, and all non-essential costs for near-term cost reductions or deferrals," it said.
Additionally, today they borrowed $1.0B to improve liquidity, even though they already had around 3B on hand.
If SWA cuts “at least” 20% capacity, I wouldn’t expect us to do any better....
SAVE will sail through this if we manage no worse than 20-30% loss of capacity over 2-3 months IMOHO.
I suspect we might see 50%, but the real question is how much capacity do we need to realize to dog paddle and hang on until sanity returns?