Southwest Airlines CEO sees low-fare environment when traffic returns
(Reuters) - Southwest Airlines Co (LUV.N) Chief Executive Officer Gary Kelly said on Friday he expects a “brutal low-fare” environment when traffic returns after coronavirus-induced restrictions ease.
“There are far more airplane seats right now, and there will be for some time, than there are customers,” he said in a video message.
“Our low-cost philosophy, strategy and structure will serve us very well.”
The COVID-19 pandemic has brought air travel to a virtual halt, leading to an unprecedented number of flight cancellations globally and resulting in airlines booking hefty losses.
Airlines have been operating about 90% fewer flights than normal but they are gradually adding flights back to their schedules as demand is starting to pick up.