US airline bailout helps Southwest post $116 million profit
3 years, 8 months ago

US airline bailout helps Southwest post $116 million profit

Associated Press  

DALLAS — Southwest Airlines is the first major U.S. airline to report a profit since the pandemic started, as federal payroll aid helped boost the company to net income of $116 million in the first quarter. Southwest is benefitting more from the pickup in leisure travel because its biggest rivals — American, Delta and United — depend more on business travel and long-haul international flying, both of which remain deeply depressed. Kelly also expressed gratitude for federal payroll aid — the airline industry has received $64 billion in cash and low-interest loans over the past 13 months to help cover labor costs. Without Southwest’s share of that aid and other temporary items, Southwest would have lost $1.72 per share.

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History of this topic

How much will Southwest Airlines change to boost profits? Some details are emerging
2 months, 4 weeks ago

How much will Southwest Airlines change to boost profits? Some details are emerging

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. CEO Jordan fired back on Wednesday, saying it is …

Southwest Airlines plans to start assigning seats, breaking with a 50-year tradition
4 months, 4 weeks ago

Southwest Airlines plans to start assigning seats, breaking with a 50-year tradition

Associated Press  

DALLAS — Goodbye, cattle call. “I know there are going to be customers who say, ‘I want to stay with open seating.’ It’s a minority,” Southwest CEO Robert Jordan told CNBC, “but we had the same thing when we switched from plastic boarding passes. I’m convinced we can win them over.” The airline said surveys showed that 80% of its …

Higher costs and low base fares send Delta’s profit down 29%. The airline still earned $1.31 billion
5 months, 1 week ago

Higher costs and low base fares send Delta’s profit down 29%. The airline still earned $1.31 billion

Associated Press  

Americans are traveling in record numbers this summer, but Delta Air Lines said Thursday that it saw second-quarter profit drop 29% due to higher costs and discounting of base-level fares across the industry. Delta doesn’t disclose average fares, but passengers paid 2% less per mile in the second quarter, and there were a couple more empty seats on the average …

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2Q
5 months, 4 weeks ago

Southwest Airlines says a key measure of pricing power will be weaker than expected in 2Q

Associated Press  

DALLAS — Southwest Airlines, already under pressure from a hedge fund for disappointing financial results, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel. However, Southwest said, revenue for each seat flown one mile – a closely watched measure of pricing power – will fall by 4% to 4.5% …

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO
6 months, 2 weeks ago

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

Associated Press  

DALLAS — Activist shareholder Elliott Investment Management has bought a $1.9 billion stake in Southwest Airlines and is seeking to force out the CEO of the airline, which has struggled with operational and financial problems. It said Jordan and former CEO Gary Kelly, now the airline’s executive chairman, “are not up to the task of modernizing Southwest.” Elliott is calling …

Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well
7 months, 4 weeks ago

Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well

Associated Press  

DALLAS — Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing. In August, Southwest will stop flying to four airports: Cozumel in Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller …

Alaska Airlines says the grounding of some Boeing planes will cost the airline $150 million
10 months, 4 weeks ago

Alaska Airlines says the grounding of some Boeing planes will cost the airline $150 million

Associated Press  

DALLAS — Alaska Airlines said Thursday that the grounding of its Boeing 737 Max 9 jetliners will reduce full-year profit by $150 million and slow down the airline’s planned growth. “Until this incident, we were happy with the Max,” said CEO Ben Minicucci, “but we are going to hold Boeing’s feet to the fire to make sure that we get …

Pilots at Southwest ratify a contract that will boost their pay raises by nearly 50% by 2028
11 months ago

Pilots at Southwest ratify a contract that will boost their pay raises by nearly 50% by 2028

Associated Press  

DALLAS — Pilots at Southwest Airlines have overwhelmingly approved a new contract that will raise their pay rates by nearly 50% by 2028, becoming the last group of pilots at the nation’s four biggest airlines to score huge raises. The Southwest Airlines Pilots Association said Monday that the agreement covering pay and other issues for about 11,000 pilots was ratified …

Southwest Airlines reaches $140 million settlement over holiday flight-canceling meltdown last year
1 year ago

Southwest Airlines reaches $140 million settlement over holiday flight-canceling meltdown last year

Associated Press  

DALLAS — Southwest Airlines will pay a $35 million fine as part of a $140 million settlement to resolve a federal investigation into a debacle in December 2022 when the airline canceled thousands of flights and stranded more than 2 million travelers over the holidays. Southwest said it was “grateful to have reached a consumer-friendly settlement” that gives the airline …

Southwest Airlines reaches $140-million settlement for December 2022 flight-canceling meltdown
1 year ago

Southwest Airlines reaches $140-million settlement for December 2022 flight-canceling meltdown

LA Times  

Canceled Southwest Airlines flights appear on the monitors at Los Angeles International Airport on Dec. 29, 2022. Southwest Airlines will pay a $35-million fine as part of a $140-million agreement to settle a federal investigation into a debacle in December 2022 when the airline canceled thousands of flights and stranded more than 2 million travelers over the holidays. Southwest said …

The US has decided that Southwest’s customer service failed during flight cancellations last winter
1 year, 1 month ago

The US has decided that Southwest’s customer service failed during flight cancellations last winter

Associated Press  

DALLAS — Federal regulators have told Southwest Airlines that the carrier failed to provide enough help to travelers who were stranded during massive cancellations last December, and the airline could be subject to a fine. Southwest said in a regulatory filing Monday that it can’t estimate the cost of a fine and damages from lawsuits stemming from nearly 17,000 canceled …

Southwest Airlines quarterly profit slides 30% and says growth will slow next year
1 year, 1 month ago

Southwest Airlines quarterly profit slides 30% and says growth will slow next year

Associated Press  

DALLAS — Southwest Airlines’ third-quarter profit fell 30% to $193 million despite record revenue as leisure travel boomed over the summer, and the airline is losing pricing power at the same time that labor costs are rising. Southwest said Thursday that it will throttle back growth plans next year because of changes in travel, including a disappointingly slow recovery in …

American Airlines lost $545 million in the third quarter on higher labor costs while rivals prosper
1 year, 2 months ago

American Airlines lost $545 million in the third quarter on higher labor costs while rivals prosper

Associated Press  

DALLAS — American Airlines posted a $545 million loss for the third quarter as revenue was flat with last summer and costs rose, especially to cover a new contract with its pilots. Wall Street had already discounted the airline’s earning potential as jet fuel prices continue to creep higher: Analysts were expecting full-year profit of $2.34 per share even before …

American Airlines rides travel boom to $1.3 billion profit in the second quarter as fuel prices drop
1 year, 5 months ago

American Airlines rides travel boom to $1.3 billion profit in the second quarter as fuel prices drop

Associated Press  

DALLAS — American Airlines reported a $1.34 billion profit for the second quarter, boosted by strong ticket sales and a huge drop in the price of jet fuel, and the airline raised its profit expectations for the year. Analysts were disappointed in American’s forecast that third-quarter revenue per seat will decline about 6% as the airline adds more flights, which …

Tale of 2 airlines: Big profit at American, Southwest loss
1 year, 10 months ago

Tale of 2 airlines: Big profit at American, Southwest loss

Associated Press  

American Airlines and two smaller carriers gave more proof Thursday of the recovery in air travel, posting better-than-expected profit for the fourth quarter, while Southwest Airlines lost money because of massive flight cancellations last month. The airline had signaled it would lose money, but the adjusted loss of 38 cents per share was worse than the 7 cents per share …

US investigating December flight cancellations at Southwest
1 year, 10 months ago

US investigating December flight cancellations at Southwest

Associated Press  

DALLAS — The U.S. Transportation Department said Wednesday it is investigating whether Southwest Airlines deceived customers by knowingly scheduling more flights in late December than it realistically could handle. “DOT is in the initial phase of a rigorous and comprehensive investigation into Southwest Airlines’ holiday debacle that stranded millions,” the department said in a statement. Southwest said its holiday schedule …

American Airlines boosts outlook after busy holiday season
1 year, 11 months ago

American Airlines boosts outlook after busy holiday season

Associated Press  

DALLAS — American Airlines raised its forecast of fourth-quarter revenue and profit Thursday, boosted by higher fares and full planes capped off with a busy holiday travel period. Officials said any gain from Southwest’s meltdown was likely offset by American canceling more than 800 flights, or 2.6% of its schedule, in late December, according to FlightAware figures. American said revenue …

‘It was horrible’: Stranded Southwest passengers still waiting to recoup costs from airline meltdown
1 year, 11 months ago

‘It was horrible’: Stranded Southwest passengers still waiting to recoup costs from airline meltdown

LA Times  

Only weeks after a Southwest Airlines meltdown led to thousands of canceled flights and stranded passengers, the nation’s air travel system was briefly interrupted Wednesday due to an outage in the computer system used by the Federal Aviation Administration to give pilots vital information before they take off. “I am trying to be patient and give them a chance to …

Southwest’s strong 2022 rebound soured by holiday debacle
1 year, 11 months ago

Southwest’s strong 2022 rebound soured by holiday debacle

Associated Press  

DALLAS — Southwest Airlines is anticipating a money-losing fourth quarter after a winter storm and technology meltdown led to nearly 17,000 canceled flights and stranded hundreds of thousands of holiday travelers. The airline said that expenses increased due to reimbursements to customers for out-of-pocket costs — the company has promised to cover “reasonable” bills for hotel rooms, meals and alternate …

Southwest starts on reputation repair after cancellations
1 year, 11 months ago

Southwest starts on reputation repair after cancellations

Associated Press  

DALLAS — With its flights running on a roughly normal schedule, Southwest Airlines is now turning its attention to repairing its damaged reputation after it canceled 15,000 flights around Christmas and left holiday travelers stranded. Southwest hopes that refunds, reimbursements and loyalty points will persuade people not to switch to other airlines, known in the industry as “booking away.” “Book-away …

Southwest apologizes, gives customers frequent-flyer points
1 year, 11 months ago

Southwest apologizes, gives customers frequent-flyer points

Associated Press  

DALLAS — Southwest Airlines is trying to make travelers who were caught in its surge of canceled flights over the holidays feel a bit better about the airline by giving them 25,000 frequent-flyer points. He added the airline is acting “with great urgency” to process refunds, return lost bags and handle requests for reimbursement of costs incurred by stranded travelers. …

America’s Southwest Airlines flew against its distinct culture
1 year, 11 months ago

America’s Southwest Airlines flew against its distinct culture

Live Mint  

Four days before Christmas, Southwest Airlines’ vice-president of ground operations Chris Johnson issued a memo to employees at the Denver airport. Declaring a “state of operational emergency,” he said the airline had received an unusually high number of absences among some workers, and would need employees “alleging illness” to provide a doctor’s note on their first day back. “It absolutely …

Southwest Airlines flight cancellations continue to snowball
1 year, 11 months ago

Southwest Airlines flight cancellations continue to snowball

Associated Press  

DALLAS — Families hoping to catch a Southwest Airlines flight after days of cancellations, missing luggage and missed family connections suffered through another wave of scrubbed flights, with another 2,500 pulled from arrival and departure boards Wednesday. In a video that Southwest posted late Tuesday, CEO Robert Jordan said Southwest would operate a reduced schedule for several days but hoped …

Column: Southwest’s meltdown was born in America’s cheapskate corporate culture
1 year, 11 months ago

Column: Southwest’s meltdown was born in America’s cheapskate corporate culture

LA Times  

Southwest passenger Amanda Gevorgyan looks for her luggage among hundreds of bags from Southwest Airlines flight cancellations at LAX. That trend implies that as the country’s other air carriers have begun to work out their own traffic snarls resulting from the massive “bomb cyclone” that struck the U.S. starting on the day before Christmas, Southwest remains mired in disaster. “Our …

Holiday Hell: How Southwest Airlines' ‘full-blown meltdown’ created travel chaos in US
1 year, 11 months ago

Holiday Hell: How Southwest Airlines' ‘full-blown meltdown’ created travel chaos in US

Firstpost  

Southwest Airlines, one of the world’s biggest low-cost carriers and the inspiration for IndiGo, cancelled around 2,900 flights on Monday. This, after US airlines cancelled 3,900 flights with Southwest Airlines – one of the world’s biggest low-cost carriers – accounting for 2,900 of these. “Our customers struggled with it just as our thousands of flight attendants did.” Montgomery in an …

Southwest Airlines brings back dividend as travel rebounds
2 years ago

Southwest Airlines brings back dividend as travel rebounds

Associated Press  

DALLAS — Southwest Airlines said Wednesday that it is bringing back dividends for shareholders, which it suspended when the pandemic devastated the airline business in early 2020. Southwest has posted the highest net income among U.S. airlines in the first nine months of this year, reporting a $759 million profit in that span. “So far we are seeing no signs …

Southwest posts record 3Q revenue as summer travel returns
2 years, 1 month ago

Southwest posts record 3Q revenue as summer travel returns

Associated Press  

Southwest posted record operating revenue in its third quarter as travelers returned in force over the summer. CEO Bob Jordan said that revenue trends stayed strong in September, even as the busy summer travel season wrapped up with business travel picking up after Labor Day. Jordan said the company anticipates revenue trends to improve from the third to fourth quarters …

Southwest forecasts a slower recovery in business travel
2 years, 3 months ago

Southwest forecasts a slower recovery in business travel

Associated Press  

DALLAS — Southwest Airlines said Thursday that corporate travel is recovering more slowly than the airline had expected, although that is offset by continuing strong demand from leisure travelers even after the end of the traditional summer vacation season. Southwest said revenue from “managed” business travel in the quarter ending Sept. 30 will be down 26% to 28% from 2019 …

American Airlines earns $476 million on record revenue in 2Q
2 years, 5 months ago

American Airlines earns $476 million on record revenue in 2Q

Associated Press  

DALLAS — American Airlines earned $476 million in the second quarter on record revenue from summer travelers and said Thursday that it expects to remain profitable in the third quarter. Gatten said Heathrow officials told American “on extremely short notice” last week to cancel departing flights to help the airport manage overcrowding. Air travel in the U.S. has returned to …

Southwest loses $278M in Q1 but sees profitable rest of 2022
2 years, 7 months ago

Southwest loses $278M in Q1 but sees profitable rest of 2022

Associated Press  

DALLAS — Southwest Airlines lost $278 million in the first quarter but said Thursday that it expects to be profitable for the rest of the year because of surging demand for travel. Southwest said its workforce grew by 3,300 people in the quarter, and CEO Robert Jordan said the airline was still “intensely focused” on hiring and training workers heading …

American Airlines loses $1.6 billion but sees better outlook
2 years, 8 months ago

American Airlines loses $1.6 billion but sees better outlook

Associated Press  

DALLAS — American Airlines lost $1.64 billion in the first quarter, a wider loss than a year ago, but said Thursday that it expects to turn profitable in the spring as travel demand strengthens. Air travel was subdued early in the year by the omicron variant that caused an increase in COVID-19 cases, but passengers returned in March, and American …

Southwest limits canceled flights after 3 tumultuous days
3 years, 2 months ago

Southwest limits canceled flights after 3 tumultuous days

Associated Press  

DALLAS — Southwest Airlines flights appeared to be running closer to normal on Tuesday after the airline canceled nearly 2,400 flights over the previous three days. Southwest maintains that bad weather and air traffic control issues in Florida on Friday triggered cascading failures in which planes and pilots were trapped out of position for their next flight. “We were significantly …

Losses mount for American and Southwest, but their outlook is brighter
3 years, 5 months ago

Losses mount for American and Southwest, but their outlook is brighter

CNN  

New York CNN Business — Financial results are finally getting better at the nation’s major airlines, thanks to a surge of vacation travel this summer. “Second quarter 2021 marked an important milestone in the pandemic recovery as leisure travel demand surged,” said Southwest CEO Gary Kelly. But Tom Nealon, Southwest’s President, told investors on Thursday that so far “we have …

Southwest Airlines plans to raise minimum pay to $15 an hour
3 years, 5 months ago

Southwest Airlines plans to raise minimum pay to $15 an hour

Associated Press  

DALLAS — Southwest Airlines plans to raise minimum pay to $15 an hour for about 7,000 employees, citing the need to attract and keep workers as the airline industry continues to recover from the pandemic. “As part of this ongoing effort, Southwest is increasing minimum pay rates so that all hourly employees will make at least $15 per hour.” Southwest’s …

Longtime Southwest Airlines CEO will step down next year
3 years, 6 months ago

Longtime Southwest Airlines CEO will step down next year

Associated Press  

DALLAS — Southwest Airlines CEO Gary Kelly will step down in February after a long run in which he steered the airline through periods of growth, recessions and now a pandemic. Jordan said in an interview that his goals are to restore Southwest’s profitability to “the levels we would like and expect,” repair the balance sheet — Southwest took on …

American Airlines cutting flights as summer season starts
3 years, 6 months ago

American Airlines cutting flights as summer season starts

Associated Press  

DALLAS — American Airlines will cut hundreds of flights over the next three weeks to avoid overloading its operation as demand for summer air travel rises faster than once expected. Jantz said the cuts are “building in additional resilience and certainty to our operation.” She said American is making the most cuts on routes where it has multiple flights to …

Airline losses mount but the worst appears to be over
3 years, 8 months ago

Airline losses mount but the worst appears to be over

CNN  

New York CNN Business — The red ink continued to flow at US airlines in the first quarter. “While the pandemic is not over, we believe the worst is behind us, in terms of the severity of the negative impact on travel demand,” said Southwest CEO Gary Kelly, whose airline reported a loss of $1 billion in the quarter, excluding …

Southwest Airlines reports first loss in 48 years
3 years, 10 months ago

Southwest Airlines reports first loss in 48 years

CNN  

New York CNN Business — The last time Southwest Airlines posted an annual loss was 1972, when it was a small upstart airline flying a handful of planes on Texas-only routes. The six largest US airlines lost $30.4 billion last year American Airlines, the world’s largest airline by some measures, also posted an even bigger record annual loss of $9.6 …

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