COVID 19: Southwest Air in a solid position, but uncertainty abounds
It is a dangerous exercise to predict airline survivors of the COVID-19 crisis, but with approximately 20 months of liquidity, Southwest Airlines is in better position than many other operators.
The airline's lower exposure to business travellers and solid unencumbered asset base are other tools in its war chest for navigating the COVID-19 crisis. And although demand is still extremely depressed, Southwest is detecting some improvement off low bases in Jun-2020.
However, Southwest's management is warning that if conditions do not improve quickly over the US summer, both Southwest and the airline industry at large will need to restructure radically.
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