Southwest Airlines plunges into massive 1.1 billion dollar losses after the Disastrous December 202’ cancellation Chaos the airline is now suffering Another 325 million dollars in loss as Customers continue to shun the carrier Due to the flight cancellations that Through the holiday season into chaos Despite southwest's promising travel Demand and revenue Trends in March its Financial toll has reached a staggering 1.1 billion dollars finding out how this Devastating meltdown has caused turmoil And widespread meltdowns for the airline What's being done to rectify the Situation and what this means for the Industry let's get into it thanks for Watching Next News Network I'm Ivory Hecker filling in from my YouTube Youtube.com ivoryhacker Stay ahead of the news uh tap subscribe Below and enable notifications for the Latest breaking news Southwest Airlines has been struggling To recover from its December 202’ Cancellation chaos which has cost the Company 1.1 billion dollars in losses Take a look Yeah me and my producers have been going Through this for the last 15 minutes Here Cara good morning to you and we Have been looking forward to this report For three months this really gives us a Better picture of that Financial hit
That Southwest took from canceling Thousands of flights back in December so Here's the numbers once again just into Our Newsroom in the last few minutes Here Southwest posted a net loss of 159 Million dollars in the first three Months of this year CEO Bob Jordan says He was expecting a loss after those Disruptions around the holidays but the Dallas-based airline also reports a Record first quarter operating revenue Of 5.7 million dollars Executives say They expect to post a profit in the next Quarter now I also just got the earnings Report from Fort worth-based American Airlines Well the airline canceled 16 700 flights During the last 10 days of December due To winter storms in Chicago and Denver Causing chaos and widespread meltdowns During the holiday season the airline Has already suffered an 800 million Dollar Revenue loss in the last 10 days Of 202’ alone and a further 159 million Dollar loss in the first quarter because Of Travelers avoiding booking with the Airline and canceling their return Flights from the holidays take a look As most Airlines rebound tonight the Travel nightmare for Southwest Passengers presses on they told us that The flight was canceled making up nearly 90 percent of today's cancellations Southwest nixing another 2500 flights
That's on top of the more than 11 000 Already canceled in the last week I Really hope they figure out whatever the Problems are and get back on track so What's keeping one of the country's Largest carriers from bouncing back Industry experts blame a trifecta of bad Weather the airline's outdated Scheduling system and its lower cost Point-to-point flight design which sends Planes from one destination to the next And so on instead of the popular Hub and Spoke system connecting passengers and Crews through a central point in a Point-to-point system like in Southwest You can see a real domino effect of Cancellations where if one flight gets Canceled it puts a lot of future flights That that plane and pilot and crew are Supposed to operate at risk the airport Armageddon no surprise to the Southwest Airlines Pilots Association we've been Warning of this for over five years the Last two years we've seen more meltdowns They've been more severe the Senate's Transportation committee promising today To investigate the causes of Southwest Flight cancellations and they're Cascading effects seen in the scores of Unclaimed suitcases from Dallas and St Louis to Chicago and Baltimore Well now as Travelers continue to avoid Southwest the airline has experienced Another 325 million dollar loss bringing
Its Financial to toll to over 1.1 Billion dollars according to a report by The Dallas Morning News Southwest CEO Bob Jordan attributed the majority of The impact to a negative Revenue impact Of approximately 325 million dollars resulting from Cancellations of holiday return travel And a deceleration in bookings from January to February despite this Jordan Added that travel demand and revenue Trends in March were strong resulting in Solid profitability for the month and Record first quarter revenues the December cancellations had a significant Impact on Southwest finances and the Airline's first quarter loss was Disappointing and not how the company Envisioned starting 202’ according to Southwest Executive Vice President and Chief Financial officer Tammy Romo Romo Recognized southwest's on-time Performance through March as solid but The airline struggles and the inevitable Slowdown came at an in Opportune time in the travel industry Where costs are rising for wages and Supplies but High airfares are more than Offsetting inflationary pressure Jeff windahl senior Equity Analyst at Edward Jones said Southwest was battling Through expenses due to weather Disruptions however he did not see any Red flags as the carrier headed into the
Busy summer travel season we've talked About how the bookings have been very Solid he said so it appears to be Heading in the right direction Southwest technology was unable to keep Up with the need to reassign pilots and Flight attendees attendance during the December weather event Forcing the airline to cancel flights And shut down most of its Network to Reset This put out more than 2 million Passengers during the key holiday travel Period causing significant damage to the Airline's reputation on the days after The initial weather event Jordan other Southwest Executives apologized for the Chaos Promising to upgrade the airline system Quote for these extreme circumstances so That we never again face what's Happening right now take a look Everyone who is dealing with the Problems we've been facing whether you Haven't been able to get to where you Need to go or you're one of our heroic Employees caught up in a massive effort To stabilize the airline to know is that We're doing everything we can to return To a normal operation and please also Hear that I'm truly sorry Here's why this giant puzzle is taking Us several days to solve Southwest is The largest carrier in the country not
Only because of our value and our values But because we built our flight schedule Around communities not hubs so we're the Largest airline in 2’ of the top 25 Travel markets in the U.S cities where Large numbers of scheduled flights Simultaneously froze as record bitter Cold brought challenges for all Airlines You know our network is highly complex And the operation of the airline counts On all the pieces especially aircraft And Crews remaining in motion to where They're planned to go With a large Fleet of airplanes and Flight crews out of position in dozens Of locations and after days of trying to Operate as much of our full schedule Across the busy holiday weekend we Reached the decision point to Significantly reduce our flying to catch Up We're focused on safely getting all the Pieces back into position to end this Rolling struggle Justice is joining in on the federal Investigation into the airline's Treatment of customers after the December cancellations this Investigation could result in Significant fines and further damage to The airline's reputation take a look The Department of Justice is joining a Federal investigation into Southwest Airlines holiday travel season meltdown
The Department of Transportation says Doj investigators are looking into Whether the airline's flight schedule Was unrealistic as we've reported the Transportation department opened a probe Into the airline after more than 16 Thousand flights were canceled over the Winter holiday it's aiming to determine If Southwest Airlines provided the Required timely refunds and Reimbursements Well despite these challenges Southwest Remains optimistic about the future the Airline told investors it it believes The negative Revenue impacts have Subsided and are now behind them According to Ryan Greene Southwest Executive Vice President and chief Commercial officer quote we believe These negative Revenue impacts have Subsided and are now behind us Southwest December struggles came at a difficult Time for the airline as the travel Industry is facing Rising costs for Wages and supplies however southwest's Solid performance in March and strong Revenue Trends have given the airline Hope for the future the airline is Determined to upgrade its Systems and Technology be be better prepared for Winter weather and rebuild its Reputation after the December Cancellations Southwest Airlines Continues to struggle in the aftermath
Of the December 202’ cancellation chaos Which has now resulted in a staggering 1.1 billion loss in Revenue while the Airline has acknowledged the negative Impact caused by the cancellations and Subsequent Fallout it has also expressed Optimism that the worst is behind them And that Revenue Trends are starting to Turn around Let's continue this conversation in the Comments below let me know your thoughts For Next News Network I'm Ivory Hecker Thank you for watching that report using Ad blockers while browsing the web is Now recommended by the FBI in a new Report it's revealed that an identity Theft occurs every 2’ seconds the risks Of identity fraud data breaches account Hacks and more has never been greater Today's sponsored virtual Shield has Been my go-to security program for the Past year and with virtual Shield I can Browse the internet anonymously Protecting myself my data and my Finances from cyber criminals virtual Shield is an industry-leading VPN that Offers anonymous browsing strict no Logging policy unlimited bandwidth and Built-in malware and ad blocking you can Start browsing the internet anonymously By using my link below or simply by Going to virtualshield.com nextnews and Get a 60-day total risk-free trial if You're on mobile tap more below we'll
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