Southwest forecasts slower cash burn as February ticket sales improve

Southwest Tuesday forecast slower cash burn in the current quarter as leisure bookings and demand improve in February. The US budget carrier said it expects average core cash burn to be about $15m a day in Q1, compared with the $17m it estimated previously, sending its shares up more than 2% in trading before the bell. Southwest, however, said business travel demand and bookings remained depressed. US airlines expect demand to improve this year as vaccines become more widely distributed but have warned that the strength of any rebound will depend on the pace of vaccine rollouts and the easing of travel restrictions. So far, the US vaccine roll-out has been patchy and many European countries are discouraging travel and implementing more travel curbs to contain the spread of new infections.<br/>