Southwest Airlines is Under a Total Meltdown of Cancellations
WISCONSIN (CoinChapter.com) — Southwest Airlines went from the most popular airline a few years ago to a sore eye of late. Unfortunately, due to a severe cold and snow streak the US experienced, Southwest has some bad numbers to report this holiday season.
The airline canceled 5,400 flights with hundreds of delays. Some flights are under such significant delays those routes will not see service until early next year. Ouch! This will not keep the airline on top of the most favorite carriers list.
Every major airline experienced delays due to Winter Storm Elliott. But Southwest’s delays are so prolific that the US Department of Transportation (USDOT) got involved with some harsh words.
After the airline canceled 71% of its scheduled flights in a matter of days, the USDOT released a statement:
“USDOT is concerned by Southwest’s unacceptable rate of cancellations and delays & reports of lack of prompt customer service. The Department will examine whether cancellations were controllable and if Southwest complies with its customer service plan.”
Southwest Operating on One-Third of its Flight Schedule
Southwest Airlines is so overwhelmed they will not re-book any flights until next year. To compare the amplified extent of Southwest’s problem, American Airlines canceled under 1% of its flights, United 5%, and Delta 9%. In addition, winter storms battered much of the nation with cold, ice, high winds, and snow.
While other airlines were recovering, Southwest continued to falter. CEO Bob Jordan, understandably distressed, said that the airline is cutting its schedule, hoping that operations can reset. Regarding that decision, Mr. Jordan added:
“Obviously, that will have even more impact on our Customers. But we’ve got to get out of this. We’ve got to get to the point where we’re reliable, and we get our customers, our crews, our aircraft, everything on track.”
2021 Meltdown Resulted in a $75M Loss
A similar meltdown occurred in 2021, costing $75 million in lost revenue. However, this year’s financial losses will be much greater because the airline is utterly trounced. Besides the financial impact, the ability to re-book flights, get back to a full flight schedule, and gain customer confidence again will take more than a few weeks.
Southwest stock (NYSE:LUV) fell over 6% to less than $34 per share on the news.
The post Southwest Airlines is Under a Total Meltdown of Cancellations appeared first on CoinChapter.
Filed under: Bitcoin - @ December 29, 2022 2:33 pm