Southwest’s crisis during the holidays has cost them a reported 800+ million.
The hundreds of millions have therefore resulted in the airline adjusting its expectations for the fourth quarter. An adjustment that will see a fourth-quarter profit turn into a fourth-quarter loss.
Calculations that comprise passenger reimbursements, exterior costs and general lost revenue. Southwest cancelled more than 15,000 flights across ten days during the peak holiday demand. It brought on a severe winter storm.
Setting record lows and conditions that spiralled the operations out of control. Although, as stated by analysts and those within Southwest, this had been a long time coming. The problem stretched to old technology.
As a company we spend about $1B a year on technology. And we’ll will continue to upgrade the tools and processes our Employees use to serve you, our valued Customers, and make sure those items deliver on our mission. to connect People to what’s important in their lives through friendly, reliable, and low-cost air travel. We have a proud 51-year history of doing just that, and I’m confident we’ll continue to deliver on this all-important Promise.Bob Jordan, Southwest CEO
Southwest has continued to come under fire from frequent flyers and the general public. However, the airline reiterates that they’re making good progress in recovering. From focusing on passengers with travel plans collapse to its workforce impacted, too much more.
Customers impacted by the disruption can also expect 25,000 frequent flyer points, labelled as a “goodwill gesture” by the CEO, Bob Jordan.
Southwest will have a long way to go in repairing customer relationships and more after the holiday meltdown.