Southwest CEO predicts 'brutal low-fare' pressure when traffic returns

May 29, 2020 6:57 PM ETSouthwest Airlines Co. (LUV), JETSLUV, JETSBy: Carl Surran, SA News Editor66 Comments
  • Southwest Airlines (NYSE:LUV) CEO Gary Kelly expects competition for passengers will create a "brutal low-fare environment" for carriers when traffic returns after COVID-19 restrictions ease.
  • Even with capacity cuts, the number of available airline seats will still far outnumber customers in the near term, Kelly told employees in a video message, but "our low-cost philosophy, strategy and structure will serve us very well."
  • With a potential price war adding pressure on already struggling airlines, Southwest is preparing contingency plans in case more radical changes are required for survival, the CEO said.
  • The company said yesterday it was adding new routes with more frequencies and nonstop flights from Phoenix, Denver, Las Vegas and Nashville.
  • ETF: JETS

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