© Reuters. Outbreak of the coronavs disease (COVID-19) in Oakland, California

(Reuters) – Southwest Airlines (N:) said on Wednesday it has enough cash to carry on business for the next two years, up from its prior forecast of 20 months, as travel demand gradually picks up.

The company’s assessment is based on current cash and short-term investments of $13.9 billion and an expected average daily cash burn of about $20 million in June.

“The company has continued to experience a modest improvement in passenger demand and bookings in June 2020—primarily leisure-driven demand,” Southwest said.

In the second quarter, Southwest said it expects average daily core cash spending of between $30 million and $35 million. The airline had earlier forecast a capacity decline of up to 60% from a year ago.

Last week, American Airlines (O:) said it expects to halt its daily cash burn by the end of 2020, thanks to cost-cutting measures and an improvement in travel demand.

Southwest shares were trading marginally higher at $36.67 before the bell.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link