Delta variant spreads, Southwest no longer sees profit in Q3

Southwest Airlines says it may not be profitable in its third quarter and now foresees operating revenue for the period coming in lower than previously expected as it deals with rising concerns over increasing COVID-19 cases

Southwest Airlines said Wednesday that it no longer expects to turn a profit in the third quarter as a surge in COVID-19 infections fueled by the highly contagious delta variant darkens the outlook for travel. The disclosure comes just three weeks after Southwest CEO Gary Kelly said the airline had passed a milestone by earning a profit in June even excluding government pandemic relief. The airline said Wednesday that it was profitable again in July, but it believes that the pandemic's shadow makes it less likely that the airline can post a profit in the third quarter without federal aid for payroll costs. Southwest is the second U.S. airline to lower expectations because of the highly contagious delta variant of COVID-19. Last week Frontier Airlines, a smaller discount carrier, blamed the virus for causing bookings to weaken more than the usual decline that occurs each year as summer winds down.