Southwest Airlines’ holiday chaos could cost it up to $825 million : NPR
Kamil Krzaczynski / AFP via Getty Images
Southwest Airlines says discontinuity resulted in more than 16,700 flights being canceled during the holidays that could cost the company up to $825 million, according to a regulatory filing by the company on Friday.
Severe weather, staff shortages due to the pandemic, and outdated computer systems cause The largest domestic airline in the US canceled thousands of flights from December 21 to December 31. Massive flight cancellations stranded families and airline staff over Christmas and New Year, leaving luggage unclaimed piled up at airports across the country.
Some affected customers are still waiting for their baggage to be returned. It’s been more than two weeks since Southwest canceled Brittney Buckley’s flight from Denver to Chicago on December 21. And she still doesn’t know where her luggage is.
She said the airline had not provided her with any more updates and that the online portal would not allow her to upload receipts that the airline had promised to refund.
“I just hope that one day I will be able to find them,” Buckley said. “I just don’t know how much I trust Southwest anymore.”
As a result, the airline is expected to suffer some serious losses: its stock plummeted right after the holiday crisis and a passenger was the Southwest case after he claimed that they had not properly reimbursed him or his daughter for a canceled flight. On Wednesday, the airline started offering 25,000 frequent flyer points — worth more than $300 in flights — for passengers whose flights are canceled or significantly delayed during the holidays.
The operational crisis has also led to widespread criticism of the airline’s operations. Southwest Airlines Pilots Association publish a letter criticized the airline’s president and former chief executive officer, Gary Kelly.
“Gary Kelly remains supreme on this Company’s board despite overseeing decisions and setting the conditions that make the most recent failure possible,” said Captain Tom Nekouei, deputy chief of staff. president of the Southwest Pilots Association, writes. “First, I get tired of seeing my Company’s good reputation, and in some cases, the reputations of our colleagues dragged down the mud in the national media. ”
United States Secretary of Transportation Pete butt said the airline “has let customers down” and added that his department will work to “get back to travelers what they owe.”
Mr Buttigieg, tweeted on December 31.
Southwest Airlines has let customers down over the past week, and our department will continue to act to give travelers back what they owe.
This comes as we conclude a year of very active—and fruitful—in the protection of airline consumers.
– Minister Pete Buttigieg (@SecretaryPete) December 31, 2022
In Friday’s filing, Southwest said it expected to lose between $400 million and $425 million in revenue. It said the remainder of the estimated $725 million to $825 million negative financial impact came from covering increased operating costs, including refunding travelers and rewarding them with customer points. regularly, as well as pay its employees.
On Thursday, Bob Jordan, current CEO of Southwest, I apologize to my passengers.
“I cannot express how sorry I am for the impact these challenges have had on our employees and customers,” he said. “We have a long and proud track record of meeting expectations, and when we fall short, we aim to do the right thing.”