Southwest posts wider-than-expected loss as toll of holiday crisis stretches into 2023
Publishing timestamp: 2023-04-27 15:46:03
Summary
Southwest Airlines lost $159 million in the first quarter due to the financial impact of its holiday meltdown, which resulted in over 16,000 flight cancellations in December. The incident had a $325 million revenue impact for the first quarter, and the company expects revenue headwinds into the second quarter but forecasts a profit. The airline's revenue per available seat mile is expected to be down 8% to 11% in the second quarter from last year, with capacity up 14%. The company also expects costs, excluding fuel, to be up 5% to 8% in the second quarter, and it will receive only 70 of Boeing's 737 Max planes this year, down from 90.
Sentiment: NEGATIVE
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Source: https://www.cnbc.com/2023/04/27/southwest-airlines-luv-earnings-q1-2023.html