Southwest to apply for US government aid as demand craters

Southwest said Thursday it intends to apply for US government aid to help it ride out the sharp drop in travel demand caused by the massive lockdowns because of the coronavirus pandemic. "We still don't know the severity of this situation. We still don't know how long it will last," Southwest CE Gary Kelly said. Half of $50b in available aid for US airlines is in the form of grants that would cover employee payroll through Sept. 30. The deadline to send applications to the US Treasury department for the grants is Friday at 5:00pm ET. "We have a team focused on that as we speak," Kelly said. The other major U.S. carriers have also said they intend to apply for the grants, though the industry has pushed back on a condition that allows the US Treasury to demand warrants or equity in exchange for the cash. Airlines have also continued to shore up liquidity on their own, with Southwest saying on Thursday it had drawn down $2.33b in credit and had $3.33b outstanding as of April 1, under the credit agreement.<br/>