Forecast Of The Day: Southwest Airlines Average Occupancy Rate

by Trefis Team
+20.36%
Upside
47.63
Market
57.33
Trefis
LUV
Southwest Airlines
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What?

Trefis expects  Southwest Airlines (NYSE: LUV) Average Occupancy Rate – which is the percentage of seats occupied by revenue-paying passengers in a flight – to increase from levels of about 52% in 2020 to about 62% in 2021 and 67% in 2022.

Why?

The progress with mass vaccination programs and lower Covid-19 cases in the U.S. is leading to a gradual recovery in air passenger numbers in the U.S.

So What?

The airline industry was particularly badly hit by Covid-19, but things are only likely to get better from here. Over the first two weeks of May 2021, TSA checkpoint travel numbers, a proxy for air travel rose by about 8x year-over-year. That said, air travel remains down by 30% to 40% from 2019 levels.

See Our Complete Analysis For Southwest Airlines

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