Recent Cancellations and Delays Cost Southwest $75 Million
Southwest Airlines reported its third-quarter 2021 financial results on Thursday, revealing the price tag for its recent operational nightmare. Just over one weekend earlier this month, it canceled more than 2,400 flights and delayed nearly 5,000 more.
The Dallas-based airline said it lost some $75 million from those cancellations, and subsequent customer refunds and “gestures of goodwill.” It even surpassed an estimated $40 million negative impact to its revenue due to the lingering effects of the Delta variant.
Southwest reported third-quarter net income of $446 million and a third-quarter net loss of $135 million. Meanwhile, Q3 2021 operating revenues reached $4.7 billion, down 17% compared with third-quarter 2019.
“We have reined in our capacity plans to adjust to the current staffing environment,” CEO Gary Kelly said in a statement. “Our 2022 capacity planning reflects more conservative staffing assumptions as well, all compared to our historical norm.”
The airline is aggressively hiring to reach a goal of approximately 5,000 new employees by the end of this year. Kelly said its company is more than halfway toward that goal.
“I am very proud of our people,” Kelly added in his statement. “They worked especially hard in challenging circumstances. We made good progress in our pandemic recovery in third quarter 2021, and I expect more in fourth quarter. I’m very excited about the demand recovery and our prospects for 2022.”
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it appears one earnings figure is with federal support monies and one is without.
“Southwest reported third-quarter net income of $446 million and a third-quarter net loss of $135 million.”
what?