As virus cases rise, Southwest sees slower recovery

DALLAS— Southwest Airlines cautioned recently that the tenuous recovery in air travel could be fading as coronavirus cases spike across theUnited States.

The nation’s fourth-biggest airline said after a modest rise in leisuretravel bookings from August through October, it nowsees a slowdown in whatwere improving revenue trends forNovember andDecember.

Separately, JetBlue Airways announced it will stop blocking seats starting Jan. 8— a bet that people feel more confident about traveling on full flights during a pandemic. The airline currently limits flights to70% of capacity butwill raise that to85% on Dec. 2.

Southwest said in a regulatory filing thatOctober revenue is downabout65% froma year ago, and that November and December revenue will be off60% to

65%. It is unclear whether theweakening booking trend is directly related to the surge in virus cases. Other industry officials left little doubt, however.

“Demand is softening, and in thewake of the news, it’s probably not hard to figure outwhy,” said Nicholas Calio, president of the trade group Airlines for America.

Air travel remains deeply depressed— in theU.S., it’s

downabout65% froma year ago.

Although that is an improvement overApril’s 95% decline, Calio said that U.S. airlines still are losing about $180 million a day.

In the early days of the pandemic, several airlines tried to reassure frightened travelers by blocking some seats to createmore space between passengers.

As flights have become more crowded in recent months, airlines are losing money by leaving seats empty.

TONYGUTIERREZ/AP Southwest Airlines employee OscarGonzalez, right, assists a passengerJune 24 at Love Field inDallas.