Southwest Airlines plans further measures to prevent another winter operations meltdown
Southwest will boost staff levels and add more de-icing trucks
Southwest Airlines said it plans to ramp up winter staff levels and increase the number of de-icing trucks it has on hand in order to avoid another catastrophic holiday meltdown.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
LUV | SOUTHWEST AIRLINES CO. | 31.79 | +0.02 | +0.06% |
As part of its tactical plan to boost operation resiliency, Southwest said it will also invest in other technology improvements including upgrading its customer support services.
In a Tuesday filing with the U.S. Securities and Exchange Commission, the carrier said it expects to incur a revenue loss of about $300 million to $350 million in the first quarter of 2023 for the disruption in December that led to nearly 17,000 flights being scrapped.
The airline already reported a net loss of $220 million last quarter due to the operational disaster that cost the airline approximately $800 million and is now being investigated by the Transportation Department.
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However, in the filing the company reiterated that the winter storm that rolled in right before Christmas was "more sudden and severe than it had predicted and thus had a greater than planned impact on station operations."
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Last month, COO Andrew Watterson who told the Senate Commerce Committee that the sub-zero temperatures, high winds and frozen precipitation "were worse than forecast" and "had a wide-ranging impact" on operations, especially at its key airports in Denver and Chicago Midway.