Southwest Says Flight Cancelations Triggered by Recent Winter Storm Will Cost $825 Million
Southwest Says Flight Cancelations Triggered by Recent Winter Storm Will Cost $825 Million
Southwest Airlines said Friday the tens of thousands of delayed and canceled flights trigged by a recent winter storm will cost the company $725 million to $825 million.
The company made the disclosure in a federal regulatory filing.
Southwest canceled nearly 17,000 flights during the storm, which has occurred from about Dec. 21 to Dec. 24, and the company has promised to reimburse passengers whose flights were cancelled.
This storm and the related problems left thousands of passengers stranded at airports, with many of them having lost their luggage, at least temporarily.
The reimbursements will result in the airline losing an estimated $425 million in revenue.
In the filing, Southwest cited increased operating expenses as a result of reimbursements to customers, premium pay and additional compensation for employees and the estimated value of rewards points offered “as a gesture of goodwill” to impacted customers as major contributors to the millions in additional costs.
The discount airline has also acknowledged that outdated technology and its business model, which features flights between regional airports, contributed to the cascade of cancellations while competitors recovered more quickly.
Transportation Secretary Pete Buttigieg has said he would investigate the cause of the cancellations and how they could have been prevented.
-
1:46
Top Usa NEWS FEEDER
1 year agoCellphones led to deadly New Year’s Day strike
83 -
8:01
LenaPetrova
11 hours ago🚨BRICS IS EXPANDING: Turkey, a NATO Member, Announces Plans to Join BRICS Bloc in 2024
7004 -
6:44
Chris Jericho
16 hours agoTalk Is Jericho Highlight: Gypsy Rose & Ryan - The Exclusive Interview Before The Split
274 -
26:52
Science & Futurism with Isaac Arthur
19 hours ago $0.16 earnedSpace Freighters: Cargos & Crews
6322 -
3:03:10
Fresh and Fit
8 hours agoAfter Hours w/ Girls
103K126 -
3:55:08
Alex Zedra
9 hours agoLIVE! Scary games tonight!?
29.7K11 -
1:12:46
Tucker Carlson
9 hours agoPresident Nayib Bukele: Seeking God’s Wisdom, Taking Down MS-13, and His Advice to Donald Trump
122K357 -
1:09:04
Fresh and Fit
13 hours agoA Fresh Match (Blind Date)
89.3K51 -
1:19:17
Kim Iversen
10 hours agoFinally, A Zionist Willing To Talk To Me! Dr. Shaiel Ben-Ephraim Gives His Perspective
84.1K205 -
1:21:48
TENET Media
11 hours agoGuest Frank from Quite Frankly, Hunter on Trial, Fauci’s Death Threats | The MC Hour #29
41.6K10