Southwest Airlines to Cut Capacity as Virus Spread Erodes Demand
- Discount carrier follows other reductions as disease spreads
- Airline secures $1 billion term loan to boost liquidity
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Southwest Airlines Co. will shave at least 20% of its flight capacity, freeze hiring and offer leaves to workers as the spread of coronavirus erodes demand for travel.
The carrier secured a $1 billion term loan and drew down the full amount of an existing $1 billion unsecured revolving credit facility, according to a regulatory filing Monday. It also suspended existing financial guidance for the year.