unaligned

Southwest Airlines will shave at least 20% of its flight capacity, freeze hiring and offer leaves to workers as the spread of coronavirus erodes demand for travel. The carrier secured a US$1b term loan and drew down the full amount of an existing $1b unsecured revolving credit facility, according to a regulatory filing Monday. It also suspended existing financial guidance for the year. Southwest’s pulldown follows major reductions at larger carriers and underscores the extent to which the outbreak and travel restrictions have devastated demand for air travel. “It is uncertain how long the recovery from this will be, and it is certain this will be far worse than 9/11 was,” CE Gary Kelly told workers. Southwest’s traffic reductions will be in effect April 14 through June 5, and the carrier warned that it expects revenue trends in Q2 to decline further. <br/>

WestJet will suspend international operations starting March 22 as the coronavirus prompts govts to close borders and impose other measures to stop the spread of the virus. “Prime minister Trudeau made an explicit declaration to all Canadians abroad that it is time to come home,” writes CE Ed Sims in a note Monday. “Based on this statement and the recommendations to Canadians to control the spread of the coronavirus COVID-19, we have made impactful decisions related to our operations.” The airline will suspend all international flights – including “transborder” flights to the USA, Mexico, the Caribbean and Europe – for 30 days starting March 22, the airline says. Domestic operations will be cut 50% during that time. <br/>