Vacationers hold out in line at the Southwest Airlines ticketing counter at Nashville Worldwide Airport after the airline canceled countless numbers of flights in Nashville, Tenn., on Dec. 27, 2022. The Department of Transportation is investigating the catastrophe, which led to $220 million in losses for Southwest
Seth Herald/AFP by means of Getty Photographs
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Seth Herald/AFP through Getty Illustrations or photos
Tourists wait in line at the Southwest Airways ticketing counter at Nashville Global Airport immediately after the airline canceled hundreds of flights in Nashville, Tenn., on Dec. 27, 2022. The Department of Transportation is investigating the disaster, which led to $220 million in losses for Southwest
Seth Herald/AFP by using Getty Illustrations or photos
The U.S. Section of Transportation is investigating the Southwest Airlines holiday break travel debacle, which remaining hundreds of tourists stranded for days. The investigation comes as the airline documented a $220 million loss final quarter and more losses in the very first quarter.
Southwest canceled extra than 16,700 flights around several days in late December. While a large wintertime storm prompted the original cancellations, the firm’s outdated computer software programs turned what should really have been a regular difficulty into a snowballing catastrophe that lasted for times after other airlines experienced resumed their typical functions.
The department’s investigation will glimpse into whether or not Southwest produced unrealistic flight schedules, “which below federal regulation is deemed an unfair and misleading observe,” according to a office spokesperson.
“DOT has manufactured obvious to Southwest that it should offer timely refunds and reimbursements and will keep Southwest accountable if it fails to do so,” the department spokesperson stated.
The flight cancellations cost the company about $800 million, in accordance to Bob Jordan, the airline’s president and main government officer.
About 50 percent of these losses occur specifically from the flight cancellations. The rest mostly occur from compensating prospects who purchased tickets on other airlines and dispensing further frequent flier points, which are value about $300 for every passenger.
Passengers and workers alike ended up discouraged by the firm’s absence of communication in the course of and right away after the cancellations.
In the report asserting the losses, Jordan apologized to consumers and staff, expressing the corporation has “swiftly taken techniques to bolster our operational resilience and are going through a comprehensive overview of the December events.”
Fewer people today are scheduling with Southwest due to the December 2022 catastrophe. The corporation is anticipating to shed more than $300 million in revenue in the initial quarter, though it reviews that scheduling traits are strengthening.