Transportation
Southwest’s December Crisis Reduces Sales, Leads to Quarterly Loss
- Quarterly revenue reduced as much as $350 million on snarl
- Carrier is reviewing technology investment plans for 2023
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Southwest Airlines Co.’s operations meltdown last month will lead to a first-quarter loss as the fallout extends into 2023 from a fiasco that resulted in thousands of canceled flights and prompted a federal probe into its operations.
Revenue in the first three months of this year will be reduced as much as $350 million through a combination of ongoing cancellations and reduced bookings, which Southwest attributed to the December disruptions. The carrier also expects non-fuel costs to rise as much as 4% in the period, up from a prior outlook of flat to up 2%, according to a statement Thursday that also revealed a worse-than-expected fourth-quarter loss.