Southwest Airlines Warns Delta Variant May Negatively Impact 3rd Quarter Profits

CBS Dallas/Fort Worth

August 11, 2021

After posting profits in the second quarter, officials with Dallas-based Southwest Airlines now say the highly contagious COVID-19 delta variant has darkened the outlook for the airlines. As it stands, Southwest says it may not turn a profit in the third quarter as infections spread.

The revelation, contained in a August 11 filing with the U.S. Securities and Exchange Commission, comes just three weeks after Southwest CEO Gary Kelly called the airline’s most recent quarter a “milestone” after turning its first profit without government assistance in more than a year.

The airline said Wednesday that it was profitable in July, but believes the recent negative effects of the pandemic on August and September revenue will make profitability less likely in the third quarter if the benefits of temporary salaries and wages relief are excluded.

CBS Local Digital Media personalizes the global reach of CBS-owned and operated television and radio stations with a local perspective.