Southwest says revenue improvement loses steam

Southwest said Thursday an improvement in revenue seen in the past few months was losing steam in recent weeks amid surging COVID-19 cases in the US, sending the US budget carrier’s shares down 2% in premarket trade. "While the company expected the election to impact trends, it is unclear whether the softness in booking trends is also a direct result of the recent rise in COVID-19 cases," Southwest said. “As such, the company remains cautious in this uncertain revenue environment.” Southwest said it continues to expect its November operating revenue to be between 60% and 65% compared to a year earlier, and forecast December operating revenue to drop to that range as well. The company said its October operating revenue fell 65%, compared to its expectations of a 65% to 70% drop. Southwest estimates its January 2021 capacity to decrease in the range of 35% to 40%, year-over-year, compared to an expected 40% fall in the current quarter.<br/>