In the past several days we've seen both Delta Air Lines and United Airlines report first quarter losses (of ~$534 million and ~$2.1 billion, respectively). Now Southwest Airlines has reported their results for the quarter. Southwest Airlines has reported a $94 million loss for the first quarter of 2020, or a $77 million loss when…
Continue reading: Southwest Airlines Reports First Quarter Loss
Share your questions, experiences, and thoughts below.
"it’s tougher for them to cut capacity without eliminating destinations."
I don't really know how complex their planning is but I believe WN is trying to "optimize" the system when there is nothing much to optimize anymore. With loads so low, they really don't need more that 1 direct flight per day and the rest can go through their hubs. If they try "minimize" rather than "optimize" they could, IMHO, reduce much more capacity without losing a destination. In a strange times like this I wonder how people consider frequency (departure time) vs routing (trip time) vs loyalty (never fly ... again).
On the side issue:
Funny how people don't even care to comment on airline financials, even for the ones considered to have a strong balance sheet. The Delta earnings also didn't get much LUV.
But when people trying to predict (complain) futures of traveling or airlines the comments go through the roof. People who are concerned about their miles should pay more attention to these stuff.
Somewhat related. Word is Avianca will default on a pair of loans to United. May file in June for bankruptcy and will shut down.
Wondering if LifeMiles could still be used with Star Alliance members.
We all know Avianca defaulted. It was already part of the $2.1 billion loss that was released by UA last week.
For LifeMiles, it is separate from Avianca so that might be a little better, but just a little.
Your miles should still be safe for now. The tricky part here is when you redeem, Avianca still issues the ticket so it is fair to say LifeMiles paid Avianca not Star Alliance members. This will likely mean they will not honor your Avianca ticket.
So either you fly right now, or you can redeem hotel stays. Either way, quickly before they freeze redemption (can earn but not burn).