Remember that Southwest Airlines meltdown over the holidays that stranded tens of thousands of passengers? Southwest has confessed the computer failure cost the company $800 Million. If that is not a wake-up call, I do not know what else is.
Southwest Airlines Reports Massive $800 Million Loss, Blames Meltdown
Southwest just reported its quarterly earnings. While revenue beat expectations ($6.17 billion versus $6.12 billion projected), the meltdown led to a loss far higher than initially forecast. As CEO Bob Jordan explained:
“Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth quarter 2022 net loss.”
A projected healthy profit became an overall loss of $220 million in the quarter.
The trials for Southwest Airlines are not over. The carrier still has not corrected the core problem; its crew scheduling system that could not accommodate the number of delays and cancellations that hit the airline at once. Should another horrific weather event hit the nation, Southwest might well experience an identical meltdown. To make matters worse for Southwest, the US Department of Transportation has announced it is investigating the airline over claims it had knowingly scheduled more flights that it could handle, thereby deliberately deceiving customers.
The effects of this meltdown will continue into next quarter, with Southwest also forecasting a loss in the first quarter.
Meanwhile, many passengers tell Live and Let’s Fly they still have not been made whole, specifically concerning expenses incurred during the meltdown. Although Southwest has set up an ostensibly easy online system for customer’s to claim back expenses, processing times have been slow and some denials questionable.
Do give Southwest Airlines a chance to respond to your complaint, but consider a DOT complaint if you are hitting a wall and incurred reasonable expenses due your Southwest flight being cancelled or significantly delayed.
Southwest Airlines reported huge quarterly loss thanks to losing $800 million during its week-long meltdown in late December. As Southwest digs itself out of a hole, it must be more aggressive in seeking remedies to prevent a repeat-occurrence.
image: Southwest Airlines
This letter from Captain Tom Nekouei, SWAPA 2nd Vice President, explained a lot with regards to how Gary Kelly ran things vs Herb. Sad to see such a beloved airline — from a culture perspective — fall like this. https://www.swapa.org/news/2022/two-legacies/
JUST IN: As Today’s VRBPAC [Vaccines and Related Biological Products Advisory] Meeting Ended, CDC Deputy Director Tom Shimabukuro Admits COVID Vaccines Are Causing “Debilitating Illnesses”:
“We are aware of these reports of people experiencing long-lasting health problems following COVID vaccination. … We understand that illness is disruptive and stressful, especially under those circumstances, and we acknowledge these health problems have substantially impacted the quality of life for people and have also affected those around them. And we hope for improvement and recovery. We will continue to monitor the safety of these vaccines and work with partners to partners to try to understand these adverse events”
–interesting. Perhaps the Southwest pilots who stated that the COVID vaccines were the root of the airlines problems last June weren’t so wrong after all:
“The question is, why are we having a staffing shortage? I believe it’s because of the COVID vaccines — they’re still requiring the vaccination for all new applicants and if the new applicants say they’re not going to get vaccinated, their application is passed over,” said Tom Bogart, who is a Southwest pilot. “So you have highly qualified applicants who want to work here at the airline and there are airlines passing them over. I think it’s still stems back to (that issue). People like to forget about that. The executive order (mandating vaccines) is not dead,” he said.
I’ll wait for apologies for UA-NYC, Kyle, Alan, and many others. I’ll never get one though. Doesn’t matter. CDC and FDA are now on record with what conspiracy theorists have been saying for years. Maybe LALF or someone else on Boarding Area will finally write an article about aviation and pilot safety considering these massive revelations, but I will not hold my breath.
You won’t get an apology, and nor do you deserve one.
A vaccine-related staffing shortage didn’t cause Southwest’s holiday meltdown — in fact, SWAPA wrote in a post-meltdown communication that “Southwest has had enough crews in place to operate the planned schedule. It’s not until SkySolver and scheduling roulette begin that the network spirals out of control.”
Further, SWAPA recently published an in-depth look at what it believes were key contributing factors. Nowhere in the summary does the word “vaccine” appear; however, in relevant part: “while [excess deadheading and reroute decisions] may be a symptom of the meltdown, it does refute any notion that there weren’t enough Pilots available.”
Your attempt to connect the operational meltdown to the vaccine was a brave one, but like most internet bullshit was disproven by a consultation of the facts.
You are entitled to your opinion but I’m not so sure we have the information like metrics for sick, disability and leaves to make the sweeping determinations that you are making. I think it’s more likely that US Freedom Flyers and Josh Yoder are correct. Everything is connected, drip drip drip.. I assume you didn’t see the Project Veritas videos from today and yesterday with the Director of R&D for Pfizer. No matter. Your issue, not mine. Conspiracy theorists are still winning and sharing the truth, more than can be said of you or most others.
And of SWAPA wasn’t going to mention vaccine issues before the CDC and FDA did. But they did today 🙂 Let the flood gates open. You can’t stop the truth, and it seems you can’t handle it either.
Finally, what’s the bigger issue here? An operational meltdown and a billion lost at one airline — OR possibly tens of millions injured by an unsafe mRNA cocktail, incuding pilots? It’s the latter. So fine, take the Southwest vaccine point from those picketing pilots in June off the table — what say you then about the BIGGER issue?
I’ve seen a lot of commenters come and go in the decade-plus I have been reading this site. You are genuinely one of the most pathetic ones to date. What a sad life you lead, coming here to basically post anti-vax conspiracy theories nonstop. But I guess if you don’t travel, and are a loon, what better do you have to do with your life…
All vaccines and drugs (including alil over the counter drugs) have adverse events up to and including some of the most gruesome syndromes you’ve never imagined. What’s newsworthy here? The CDC is acknowledging adverse events. Shocker!
James okeefe is a musical theater actor not a scientist.
Disagree on James.. the revelations from Pfizer vieos today and yesterday were massive. Otherwise, yeah, I’m aware of your other points. Nevertheless. the non-stop mainstream propaganda for however many years now has been that the COVID vaccines are “SAFE AND EFFECTIVE” and that there was no way shape or form that they were causing any issues. Have you been living under a rock? Watched Died Suddenly? What’s your explanation for all of the sudden deaths? There was another today for a 25 year old football player — Former NFL Defensive End Jessie Lemonier Dies at 25. “It’s unclear what the cause of death is at this time. ” Normal, right? NO.
Yesterday’s video: https://www.youtube.com/watch?v=ywlpArNWKxM
Today’s video: https://www.youtube.com/watch?v=u5n7RRKgDog
It’s not my opinion … James okeefe is a musical theater actor. It’s what he wants to be when he grows up. Fact.
So, you’re complaining that you’ve been victimized by consuming the news? Scientists KNOW there will be adverse events. People will die and suffer. Many, many more were spared being intubated in intensive care and eventual death. Get a life!
Okay, wow, that musical theater fact — which I did not know — added so much to this otherwise important conversation. Not. What you seemingly don’t understand is that this is just the tip of the iceberg. It’s estimated that 50MM people have heart damage from the vaccines. Unbelievable how you just laugh this off like it’s nothing and justify it for a bullshit virus that is doesn’t harm 99.5% of people. The vaccines are worse than actual COVID — they need to come off the market. Wake TF up dude.
I wasn’t victimized, as I didn’t take the vaccine, as I knew better. If anything, I was trying to help educate people. However many people I know and love were coerced and brainwashed into taking them with the “100% safe” narrative that EVERYONE knows was the narrative until now, except you, I guess.
I am just in disbelief right now. The mental gymnastics it takes to comment “What’s newsworthy here?” after years of nonstop propaganda, lies, and gaslighting from every direction is newsworthy. What’s newsworthy is we were trying to save your lives and your health and you demonized us and acted like we were idiots and fools. Yet we’ve only been right as the revelations continue.
Wow, what an article (SWAPA). What I don’t get is why is Gary still CEO? The WN Board of Directors should vote him out with “no confidence.” And then to think all those managers and above that caused all this mess were promoted weeks later – shame on everyone involved!
Yes, I found the SWAPA letter very informative. However Gary is not CEO any longer, Bob Jordan is now since Feb 2022, but Gary’s seemingly unfortunate legacy lives on.
CEO should have been gone already. This is what happens when you fail to invest in decent IT. It was a conscious decision and I’m sure they were aware of the potential for meltdown and no backup.
Southwest CEO: Airline ‘almost cannot apologize enough’ for holiday travel chaos. Following the holiday travel chaos that canceled nearly 17,000 flights, Lester Holt spoke one-on-one with Southwest CEO Bob Jordan on the Department of Transportation’s investigation and how the airline is trying to prevent future issues. https://www.nbcnews.com/nightly-news/video/southwest-ceo-airline-almost-cannot-apologize-enough-for-holiday-travel-chaos-161887301741
I need you to slow down, please. I’m not in the banning mood, but please recall the house rules:
Do not blatantly violate them. Make your points without links or non-consecutive comments. That’s all I ask.
And that applies to everyone reading this.
It’s not worth it coming here to get upset and to fight willful ignorance in so many comments. I’ve been trying to quit LALF for a while anyway. Aviation was always my dream career, pre-COVID. Now, I won’t pursue because I’m not vaccinated — not welcome at most airlines for that reason anyway. And who would want to work in aviation now anyway? Such a shit show at present anyway and I am a leper without the vaccine. It’s all good. Before I (finally) go, I would like to suggest updates to the comment system. A way to delete/edit/consolidate comments would be a good enhancement for the future and would have resolved many issues. All the best.
See, perfect example. I’m heated so I didn’t proofread well enough in this comment or any of my previous ones, and used the word ‘anyway’ three times. A new comment system would fix that for those with similar issues in the future.
Maybe you should be. You invite a lot of vitriol and misinformation by trying to be so “welcoming”. It’s kind of making your site a cesspool.
Agreed. It’s sad that a few posters basically ruin the experience. Worse when it’s a daily steam of dozens of misinformation posts and links.
Matt, thank you for your blog. I know you’re not getting rich from this. I respect your house rules, but I would like to include links at times because they are interesting and relevant to the point I’m making. I don’t expect people need to read them to understand a point I’m making, but they may find the information useful. Within reason, is that ok? I’d appreciate you clarifying that policy so that those of us who are honest, but ignorant, can navigate it appropriately.
Damn, those unions are powerful! $800M in losses!
(In non-consecutive responses to myself, no less!)
NYT says over $1 billion when done. Either way, perhaps if your family, your mom, your father, your child, or someone else close to you, was vaccine injured, you’d care. Perhaps not. Either way, if consecutive responses are my worst crime, crucify me.
Final rhetorical thoughts:
Can someone please explain to me how I’m supposed to ever trust the medical industry again after witnessing the medial establishment create a pandemic, release it from a lab, shame people into wearing useless masks, take dangerous experimental vaccines, and push for lockdowns that would have caused our entire society to collapse?
The fact that pharmaceutical industries practically forced millions of people to inject themselves with poison or lose their job and be ousted from society and they cannot be sued for any damage their vaccine causes after such heinous manipulation is truly the height of criminality. The establishment medical industry has exposed itself as a complete fraud that needs to be dismantled and rebuilt from the ground up.
Good luck out there people. I wish I could say it’s been fun.
And honestly I just pray that everyone who is impacted by these crimes against humanity have good health, healing and peace.
End COVID hysteria. It’s a prayer now. Amen.
Do you actually believe the lies you spread? Are you that hard up for attention? Is life truly that bad for you?
Yes / not lies / no / no
Goodbye cruel world!!! (Shaking tiny little fists)
I narrowly missed the SW fiasco Xmas eve. I went with AA which was delayed by 6 hrs on the way to DCA, but we eventually got there as did the other airlines.
Usually takes a disaster for management to wake up!!
Sounds like the cure is an amendment to an existing crew scheduling package via on-line assignments and staffing. I hope they STRESS TEST the hell out of the addendum. Otherwise, SW is putting lipstick on a pig and waisting valuable resources. Only time will tell.