Wednesday, August 10, 2022

Southwest Airlines’ October flight cancellations cost carrier $75 million

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Passengers examine in for a Southwest Airlines flight at Orlando International Airport in Orlando, Florida, U.S., October 11, 2021.

Joe Skipper | Reuters

Southwest Airlines on Thursday stated mass flight cancellations and delays that disrupted journey for tens of 1000’s of consumers earlier this month cost it $75 million.

Dallas-based Southwest canceled more than 2,000 flights between Oct. eight and Oct. 13, blaming the problems on unhealthy climate in Florida, air site visitors management compounded by staffing shortages.

The hit got here from flight cancellations, buyer refunds and “gestures of goodwill.”

The airline reported a third-quarter revenue of $446 million on Thursday because of a lift from federal support and voluntary leaves of absence by workers, nevertheless it stated employees shortages led to operational issues that harm its backside line.

“Our active (versus inactive) and available staffing fell below plan and, along with other factors, caused us to miss our operational ontime performance targets, and that created additional cost headwinds,” Southwest CEO Gary Kelly stated. That together with a surge in Covid-19 instances led to a income hit of $300 million, he stated.

Here’s how Southwest carried out within the third quarter in contrast with what Wall Street anticipated, primarily based on common estimates compiled by Refinitiv:

  • Adjusted outcomes per share: a lack of 23 cents versus an anticipated lack of 27 cents.
  • Total income: $4.68 billion versus anticipated $4.58 billion.

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