Canceled Holiday Flights , Will Cost Southwest Airlines , Over $800 Million .
Southwest Airlines holiday breakdown will cost the air carrier as much as $825 million and result in a net loss for the fourth quarter.
Southwest Airlines holiday breakdown will cost the air carrier as much as $825 million and result in a net loss for the fourth quarter.
In October, Southwest CEO Bob Jordan predicted the airline would , “generate strong profits and margins in fourth quarter.”.
In October, Southwest CEO Bob Jordan predicted the airline would , “generate strong profits and margins in fourth quarter.”.
In October, Southwest CEO Bob Jordan predicted the airline would , “generate strong profits and margins in fourth quarter.”.
'Forbes' reports that the airline says 17,000 canceled flights over ten days cost the company between $400 and $425 million in lost revenue.
'Forbes' reports that the airline says 17,000 canceled flights over ten days cost the company between $400 and $425 million in lost revenue.
'Forbes' reports that those losses come on top of reimbursements to passengers for expenses like transportation, hotels, meals and lost luggage.
The airline is also offering passengers 25,000 Rapid Rewards points as a peace offering for anyone whose flight was canceled or delayed over three hours.
According to 'Forbes' the fallout from the debacle is expected to trickle into future quarters as many of the expenses will not be recorded until they are processed.
Meanwhile, the incident has added to calls for stronger consumer protections to safeguard confidence in U.S. air travel.
Senate, Commerce Committee chair Maria Cantwell said that members of the committee will hold , "hearings for FAA reauthorization to examine how to strengthen consumer protections and airline operations.”.
'Forbes' reports that shares in Southwest are currently down 3% over last month and down 22% compared to 2021
