Southwest Airlines Launches Summer Sale with $39 Flights

Last week, Southwest Airlines raised its revenue and capacity outlook for June due to improved passenger demand.
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Southwest Airlines  (LUV) - Get Report shares were falling 2% in premarket trading Wednesday, a day after the company announced that it is offering $39 flights as part of its fall-fare sale. 

Southwest's twice annual sale is usually launched in June and October, but fares this time around are lower than they were last year as the airline industry looks to entice travelers hesitant to fly because of the coronavirus. 

One-way flight fares will start at $39, versus $49 last year, with one-way tickets for longer flights starting at $79 and $99 each way. 

The sale started Tuesday and ends Thursday at 11:59 PM CT. 

Southwest promised to do what was necessary to make travelers feel safe on their flights through social distancing and cleaning efforts. 

"The Southwest Promise is our commitment to add an extra layer of comfort for employees and customers, encompassing our cleaning practices and physical-distancing measures and additional procedures such as face mask requirements and open middle seats on Southwest aircraft," said the company's VP of marketing Bill Tierney. 

The sale covers flights between August 11 through December 17, 2020. 

Last week, Southwest raised its revenue and capacity outlook for June thanks to improved passenger demand and bookings as coronavirus lockdowns ease. 

The company now expects June revenue to be down 70% to 75% from a year earlier, an improvement from its previous projections for a decline of 80% to 85%.

Southwest said it has enough cash to operate for the next two years, up from its previous forecast of 20 months. The airline said that it had cash and short-term investments of $13.9 billion.

"The company has continued to experience a modest improvement in passenger demand and bookings in June 2020 -- primarily leisure-driven demand," Southwest said.