Southwest Airlines CEO Bob Jordan said Thursday that a recession has effectively begun within the U.S. airline sector, according to Bloomberg. He pointed to a sharp decline in domestic leisure travel demand as evidence. Jordan noted the downturn is worse than anything outside the pandemic, prompting the company to project a six-point drop in second-quarter revenue after a three-point decline in the first quarter. Southwest has pulled its full-year financial guidance, citing economic uncertainty and weakening consumer sentiment. The Dallas-based carrier relies more heavily on domestic leisure travel than its competitors, making it especially vulnerable to shifts in consumer behavior.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Southwest Airlines CEO Bob Jordan said Thursday that a recession has effectively begun
00:06within the U.S. airline sector, according to Bloomberg.
00:09He pointed to a sharp decline in domestic leisure travel demand as evidence.
00:13Jordan noted the downturn is worse than anything seen outside of the pandemic,
00:17prompting the company to reject a six-point drop in second-quarter revenue
00:20after a three-point decline in the first quarter.
00:23Southwest has pulled its full-year financial guidance,
00:25citing economic uncertainty and weakening consumer sentiment.
00:28The Dallas-based carrier relies more heavily on domestic leisure travel
00:32than its competitors, making it especially vulnerable to shifts in consumer behavior.
00:37For all things money, visit Benzinga.com slash GSTV.