Southwest Airlines warned that costs will rise faster than expected in the first quarter due to high labor expenses, despite strong demand for leisure travel. The airline's non-fuel unit costs are projected to increase as much as 9%, exceeding Wall Street's expectations. Southwest attributed the cost increases to continued inflationary pressures and recent labor contracts. However, the airline reported strong holiday travel results, surpassing profit estimates.
warned on Thursday that costs will climb faster than expected as it grapples with heavy labor expenses, undercutting gains from strong demand for leisure travel.
The carrier has said it has no plans to change its “bags fly free” policy that executives believe keeps customers loyal.that could have led to broader changes. The airline’s chief financial officer and chief administration officer — its highest-ranking female executives — said in January they would
AIRLINES COSTS PROFIT LABOR TRAVEL
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