The effect that the pandemic had on Dallas-based Southwest Airlines in 2020 is now out in raw data. The airline today announced a yearly loss of $3.5 billion, excluding special items. Revenue for the year was down 60 percent. 2020 was the first time since 1972 that the carrier announced a loss, the airline said.
In the brutal 4th quarter Southwest lost 908 million dollars.
Chief Executive Officer Gary Kelly says the airline was poised to take the hit and is in a good position to move forward once the coronavirus loosens its grip.
“What we’ve been focused on so far, obviously, is survival,” he told industry analysts. “…making sure we screw down the spending that we’re taking care of the health and welfare of our employees and our customers.”
Kelly told the analysts the carrier has already taken steps to get back to normal by allowing passengers to sit in the middle seat. He said it’s a fact that the air aboard planes is clean and safe for customers. But to get any sense of normalcy, Kelly said they have to increase routes. He added that before routes could return, the demand has to return.
Southwest retired some of its older planes and plans to bring the 737 MAX into service in March. Kelly said the plane is more fuel efficient and more cost efficient to operate. He also feels the route to Hawaii will return to popularity. The company plans to add 8 new cities to its schedule.
Southwest has a fleet of nearly 750 planes. The company avoided layoffs due to the pandemic.
