Southwest Airlines faces investigation, $220M loss over holiday travel disaster : NPR

Tourists wait around in line at the Southwest Airlines ticketing counter at Nashville International Airport immediately after the airline canceled countless numbers of flights in Nashville, Tenn., on Dec. 27, 2022. The Division of Transportation is investigating the disaster, which led to $220 million in losses for Southwest

Seth Herald/AFP by using Getty Visuals

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Seth Herald/AFP by using Getty Visuals

Tourists hold out in line at the Southwest Airways ticketing counter at Nashville Intercontinental Airport immediately after the airline canceled 1000’s of flights in Nashville, Tenn., on Dec. 27, 2022. The Division of Transportation is investigating the catastrophe, which led to $220 million in losses for Southwest

Seth Herald/AFP through Getty Photographs

The U.S. Division of Transportation is investigating the Southwest Airlines getaway vacation debacle, which left 1000’s of travelers stranded for times. The investigation will come as the airline described a $220 million decline last quarter and further losses in the initially quarter.

Southwest canceled extra than 16,700 flights more than quite a few days in late December. Although a significant winter season storm triggered the original cancellations, the firm’s out-of-date software package units turned what need to have been a ordinary challenge into a snowballing disaster that lasted for days immediately after other airways had resumed their standard functions.

The department’s investigation will glimpse into regardless of whether Southwest created unrealistic flight schedules, “which below federal law is viewed as an unfair and deceptive observe,” in accordance to a office spokesperson.

“DOT has built crystal clear to Southwest that it need to provide well timed refunds and reimbursements and will maintain Southwest accountable if it fails to do so,” the office spokesperson reported.

The flight cancellations value the business about $800 million, according to Bob Jordan, the airline’s president and main government officer.

About fifty percent of these losses come right from the flight cancellations. The rest largely arrive from compensating buyers who purchased tickets on other airways and dispensing extra frequent flier factors, which are well worth about $300 for every passenger.

Passengers and workforce alike ended up disappointed by the firm’s deficiency of communication all through and straight away after the cancellations.

In the report asserting the losses, Jordan apologized to customers and personnel, stating the enterprise has “quickly taken methods to bolster our operational resilience and are undergoing a in depth assessment of the December activities.”

Much less men and women are scheduling with Southwest owing to the December 2022 catastrophe. The business is anticipating to eliminate in excess of $300 million in profits in the very first quarter, while it studies that booking developments are improving.