The holiday meltdown at Southwest Airlines last month cost the company as much as $825 million in lost revenue and added expenses, the company said in a government filing.
"There's just no way almost to apologize enough because we love our customers, we love our people and really impacted their plans," Jordan said. "There will be a lot of lessons learned that come out of this."Christopher Goodney/Bloomberg via Getty Images
In October, Southwest Airlines predicted strong financial performance over the final three months of 2022, estimating an increase in operating revenue of as much as 17% compared with the same period in 2019. The holiday meltdown appears to have scuttled those aspirations. Compared with the same period two years prior, the company now estimates a 6% decline in carrying capacity, which measures the total number of passengers transported over a combined number of miles, the filing said.
Despite the news of the company's financial blow, the price of Southwest Airlines shares inched upward in early trading on Friday.All in all, the company will likely overcome the blow to its reputation, said Feinstein. "If Southwest fixes this issue so that it doesn't happen again, future passengers will forget and move on," he said. "When they're buying a flight, passengers typically book on price and schedule."
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