Southwest Airlines holiday meltdown will cost company up to $825 million

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The holiday meltdown at Southwest Airlines last month cost the company as much as $825 million in lost revenue and added expenses, the company said in a government filing.

"There's just no way almost to apologize enough because we love our customers, we love our people and really impacted their plans," Jordan said. "There will be a lot of lessons learned that come out of this."Christopher Goodney/Bloomberg via Getty Images

In October, Southwest Airlines predicted strong financial performance over the final three months of 2022, estimating an increase in operating revenue of as much as 17% compared with the same period in 2019. The holiday meltdown appears to have scuttled those aspirations. Compared with the same period two years prior, the company now estimates a 6% decline in carrying capacity, which measures the total number of passengers transported over a combined number of miles, the filing said.

Despite the news of the company's financial blow, the price of Southwest Airlines shares inched upward in early trading on Friday.All in all, the company will likely overcome the blow to its reputation, said Feinstein. "If Southwest fixes this issue so that it doesn't happen again, future passengers will forget and move on," he said. "When they're buying a flight, passengers typically book on price and schedule."

 

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They need someone who knows how to run Southwest Airlines

Not to overlook the $ millions of expenses the thousands of customers incurred as a result of Southwest’s failures…

It didn’t cost them nothing, they had already stolen people money knowing they did not have the workforce still charged them so people had to go and loose their holidays and time in the airport cause of their greedy ass, not using southwest again. Let Southwest go broke.

They want tax relief or a bail out.

To bad

😂😂😂😂😂😂

Pilots would have been available if they were not forced to take the Cl0t Sh0t.

Still waiting for money back

Play the lotto

A huge tax right off

It would cost them a hell of a lot more if they were offering the people they stranded more than a free banana and a $15 gift card to Dollar General.

I see BK in that airlines future

So what? If they end up in trouble again financially, they'll use government money bailout to buyback more stock, give huge bonuses to the top execs and we'll meet back here in 10 years so the cycle can repeat

Good. Fix your systems and stop exploiting your workers as well as your customers. I know this will ultimately only affect those least at fault. Still it is a consequence of these companies using the same old system. Only for money never for quality and proper services.

Now don’t bail them out ever again.

No more stock buy backs for a while then

Seems like a minor loss compared to how much they pull in each quarter

Man if only they used their Covid relief to pay their employees instead of stock buybacks.

good.

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Southwest meltdown may cost the airline up to $825 million | CNN BusinessThe cost of the service meltdown at Southwest Airlines over the year-end holidays cost the airline nearly $1 billion and will cause the company to report a loss rather than a profit in the fourth quarter, the airline said in a filing on Friday. Let them go bankrupt. Don't allow any government subsidies No matter what compensation is given to the passengers, it will never change what happened to those who’s vacations were completely altered and the fact that you can’t have that time back. Funny how disrespecting employees, outsourcing tech jobs, and not updating systems cost them more money.
Source: CNN - 🏆 4. / 95 Read more »