Passengers check in for a Southwest Airlines flight at Orlando International Airport in Orlando, Florida, the United States, on October 11, 2021.
Joe Skipper | Reuters
Southwest Airlines on Thursday said mass flight cancellations and delays that disrupted travel for tens of thousands of customers earlier this month cost $ 75 million.
Southwest based in Dallas more than 2,000 flights canceled between October 8th and October 13th, with Florida bad weather, air traffic control and staff shortages being blamed for the problems.
The hit came from flight cancellations, customer refunds and “gestures of goodwill”.
The airline reported a profit of $ 446 million on Thursday.
“Our active (as opposed to inactive) and available staff fell short of the plan and, along with other factors, caused us to miss our operational performance targets for on-time performance, resulting in additional costs,” said Gary Kelly, CEO of Southwest. That, along with a surge in Covid-19 cases, resulted in a $ 300 million drop in sales, he said.
Here’s how Southwest performed compared to Wall Street expectations in the third quarter, based on Refinitiv average estimates:
- Adjusted earnings per share: a loss of 23 cents versus an expected loss of 27 cents.
- Total sales: $ 4.68 billion versus an expected $ 4.58 billion.