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Southwest Airlines posts loss after flight cancellation meltdown
Friday, 26 Jan, 2023
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Southwest Airlines reported a fourth quarter loss, with a $800 million hit from its festive flight cancellation failures.
It led to a $220 million quarterly loss.
Southwest was forced to cancel over 16,000 flights in late December.
Southwest had record quarterly revenue, up 8% compared to 2019.
However CEO Bob Jordan said he expects another quarterly loss, even though booking volume is strong.
The airline’s scheduling system was the main cause of the flight cancellation debacle.
Southwest has offered 25,000 Rapid Rewards points to impacted travelers and is reimbursing additional costs like hotel stays and alternative transport.
The U.S. Department of Transportation is investigating the airline over its handling and response to the meltdown.
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