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Southwest Airlines’ October flight cancellations cost carrier $75 million

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Southwest Airlines Co. Boeing 737 passenger aircraft arrives at Midway International Airport, MDW in Chicago, Illinois on Monday, October 11, 2021.

Luke Sharrett | Bloomberg | Getty Images

Southwest AirlinesIt was announced Thursday that mass flight cancellations for this month had cost $75 million.

Dallas-based Southwest was earlier in this month canceled more than 2,000 flightsBetween Oct. 8-13, the problems were attributed to bad weather conditions in Florida and air traffic control.

Flight cancellations, refunds to customers and “gestures for goodwill” were the main drivers of this success.

It reported Thursday a $346 million third-quarter profit. This was thanks to federal grants and employee voluntary absences. But it also said that operational difficulties caused by staff shortages had adversely affected the bottom line.

Gary Kelly, Southwest CEO, stated that “our active (versus inactive), and available staffing fell under plan” and caused us to miss operational ontime performance targets. This created additional cost headwinds. This, together with the increase in Covid-19 case numbers led to an additional revenue boost of $300 millions.

This is Southwest’s third quarter performance compared to Wall Street expectations, using average estimates from Refinitiv.

  • Share adjustments: A loss of 23cs is expected versus a loss in 27cs.
  • Total revenue $4.68 billion versus expected $4.58 billion.

This is news breaking. Keep checking back for more updates.

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