Washington (dpa) - Southwest Airline reported a first quarter loss of 94 million dollars, and issued a warning on Tuesday that it expects revenues this month and next to take a massive hit of up to 95 per cent.
The airline had not posted a quarterly loss in nine years, but the coronavirus pandemic has hit travel particularly hard since February.
"The company has continued to experience weak passenger demand and bookings in April 2020, and operating revenues are currently estimated to decrease, year-over-year, in the range of 90 to 95 percent," the airline said.
The same would hold true for May. Southwest said it would not be able to predict its business environment into the summer, a key period for airlines, when they benefit from holiday travel.
First quarter revenue came in at 4.23 billion dollars.
The company noted it was able to save some costs thanks to the collapse in US crude prices.
The situation with the airlines would also have a strong effect on plane-makers, with Southwest saying it would have to renegotiate current deals with Boeing.
"In light of the current environment, we are in the process of revising our aircraft order book with Boeing and will continue partnering with Boeing on a sensible delivery schedule," the airline said.
Boeing is due to release its first quarter report on Wednesday.
Southwest was among the airlines that tapped a Treasury Department fund - allocated some 25 billion dollars by Congress - to help it survive the current situation.
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