Southwest sees ‘brutal low-fare’ pressure soon

Bloomberg

Southwest Airlines Co CEO Gary Kelly predicted that intense competition for passengers will create “a brutal low-fare environment” among carriers once coronavirus fears subside and more people start to fly.
Even with capacity cuts, the number of available airline seats will still far outnumber customers in the near term, the chief executive officer said in a video message to Southwest employees. Demand for airline travel is expected to return slowly as the country starts to reopen its businesses.
With a potential price war putting more pressure on already struggling airlines, Southwest is preparing contingency plans in case more radical changes are required for survival, the CEO said.
“We’re well prepared for this catastrophe and we must strive to stay that way,” Kelly said. “Our low-cost philosophy, strategy and structure will serve us very well.”