Southwest said it is now focused on improving its technology that contributed to thousands of flight cancellations over the year-end holidays.
Bank of America estimates the debacle will cost Southwest between $600 million and $700 million.Southwest Airlines
stabilized its schedule over the weekend after about 16,000 cancellations, but its systemwide holiday meltdown could cost it hundreds of millions of dollars. Southwest had canceled 304 flights since Friday, 2% of its schedule, most of them on Monday when U.S. airlines faced bad weather and ground stops in Florida tied to a Federal Aviation Administration equipment outage. For comparison, from Dec. 21 through Dec. 29 Southwest had scrubbed about 45% of its operation, a far bigger share than other major airlines, according to FlightAware.
Now come two more difficult tasks for Southwest: going through thousands of passenger reimbursement receipts and improving the internal technology that contributed to the meltdown.Sign up for NBC Chicago newsletters. "We have plans to invest in tools and technology and processes, but there will be immediate work to understand what lessons are learned here and how we keep this from ever happening again, because it cannot happen again," Southwest CEO Bob Jordan, who took the helm in February, told staff Friday.Bad weather kicked off the issues, impacting flights throughout the U.S.
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