Southwest sees Q1 revenue hurt coronavirus fears

Southwest said Thursday it expected a hit of up to $300m to its first-quarter operating revenue from the new coronavirus outbreak, prompting it to cut its quarterly revenue outlook. Shares of the company fell 3%, while with those of bigger rivals fell more. Southwest said it has seen a significant rise in ticket cancellations and decline in traffic because of the outbreak, which has killed over 3,000 people and caused airlines across the world to cut flights and implement cost controls. Southwest CE Gary Kelly said at an industry conference in Washington the company had not decided whether to cut its schedule but said that reducing prices would not address consumer fear. “We could discount prices tomorrow and it wouldn’t do any good,” Kelly said. Kelly told CNBC-TV that the decline in air travel demand felt more driven by fear, similar to the aftermath of the Sept. 11, 2001 hijacked plane attacks.<br/>