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WASHINGTON, Feb 9 (Reuters) - Southwest Airlines (LUV.N) on Thursday faced harsh criticism from U.S. senators at a hearing investigating the airline's meltdown that disrupted travel plans for 2 million customers, with one lawmaker calling the situation an "unmitigated disaster." While Southwest cited weather impacts, the union singled out poor preparation and a failure to modernize technology. Democratic Senator Jacky Rosen called it an "unmitigated disaster" that had a "devastating impact on families." Watterson said it has received about 284,000 cases from passengers impacted by meltdown and reimbursed more than 273,000 -- leaving 10,782. Cantwell said Southwest Chief Executive Officer Bob Jordan, who had been invited to the hearing, "didn't want to show up."

WASHINGTON, Feb 9 (Reuters) - Southwest Airlines (LUV.N) faced harsh criticism from U.S. senators at a hearing on Thursday investigating the airline's meltdown that disrupted travel plans for 2 million customers. The airline and its pilot union offered sharply contrasting reasons for the low-cost carrier's massive travel disruptions. While Southwest cited weather impacts, the union singled out poor preparation and a failure to modernize technology. Cantwell said Southwest Chief Executive Officer Bob Jordan, who had been invited to the hearing, "didn't want to show up." The meltdown caused the cancellation of almost 17,000 flights and is estimated to have cost the airline more than $1 billion.

WASHINGTON, Feb 9 (Reuters) - Southwest Airlines (LUV.N) faced harsh criticism from U.S. senators at a hearing on Thursday investigating the airline's meltdown that disrupted travel plans for 2 million customers. Senator Ted Cruz, the top Republican on the Senate Commerce Committee, called the cancellation of more than 16,000 flights "an epic screwup." While Southwest cited weather impacts, the union singled out poor preparation and a failure to modernize technology. Cantwell said Southwest Chief Executive Officer Bob Jordan, who had been invited to the hearing, "didn't want to show up." Casey Murray, president of the Southwest Airlines Pilots Association (SWAPA), said that the union has been sounding the alarm about the carrier's crew scheduling technology and "outdated" operational processes for years.

☆ Southwest explains its meltdown to Congress
▼ + stars: | 2023-02-09 | by ( Gregory Wallace | ) edition.cnn.com time to read: +4 min

Washington CNN —Congress is set to receive new evidence Thursday of internal chaos at Southwest Airlines over the Christmas holiday meltdown. The Senate Commerce committee is set to question Southwest executive Andrew Watterson, alongside Southwest pilot union president Casey Murray, Sharon Pinkerton of the Airlines for America trade group, Paul Hudson of Flyers’ Rights, and economist Clifford Winston of The Brookings Institution. It’s a mess down here.”A photograph of the message, which shows the extent of the airline’s breakdown, is included in testimony the Southwest Airlines Pilots Association union, SWAPA, plans to present at the hearing. Southwest CEO Bob Jordan apologized and the airline offered reimbursements for passengers’ costs, along with bonus points. The union criticized the airline for giving executives stock options in the wake of the meltdown while employees lost profit sharing pay because of the airline’s financial hit due to the meltdown.

WASHINGTON, Feb 9 (Reuters) - Southwest Airlines (LUV.N) and its pilot union will offer sharply contrasting reasons for the low-cost carrier's meltdown in December that disrupted travel plans for two million customers, ahead of a U.S. Senate committee hearing on Thursday. While Southwest has cited weather impacts, the union will single out poor preparation and a failure to modernize technology, according to written testimonies for the hearing, seen by Reuters. "What began as a weather event on December 21st turned into a crew scheduling event by December 24th," said Watterson. Casey Murray, president of the Southwest Airlines Pilots Association (SWAPA) said the union has been sounding the alarm about the carrier's crew scheduling technology and "outdated" operational processes for years. The committee had asked Jordan to testify but Southwest said the hearing conflicted with other commitments, including an employee rally in Baltimore on Wednesday.

☆ Southwest pilots detail the Christmas meltdown chaos
▼ + stars: | 2023-02-08 | by ( Gregory Wallace | ) edition.cnn.com time to read: +4 min

CNN —Congress is set to receive new evidence Thursday of internal chaos at Southwest Airlines over the Christmas holiday meltdown. It’s a mess down here.”A photograph of the message, which shows the extent of the airline’s breakdown, is included in testimony the Southwest Airlines Pilots Association union, SWAPA, plans to present at a Senate Commerce committee hearing. “No updates here,” another cockpit computer message to pilots read. Southwest CEO Bob Jordan apologized and the airline offered reimbursements for passengers’ costs, along with bonus points. The union criticized the airline for giving executives stock options in the wake of the meltdown while employees lost profit sharing pay because of the airline’s financial hit due to the meltdown.

☆ Southwest CEO Jordan finds himself in eye of storm after airline's holiday debacle
▼ + stars: | 2023-02-08 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +6 min

CHICAGO, Feb 8 (Reuters) - Bob Jordan, Southwest Airlines Co's (LUV.N) CEO, faces the biggest challenge yet in his 35-year career at the airline that has built a customer-friendly reputation. Southwest's struggles reached a notable low on Jan. 28 when comedy sketch TV show "Saturday Night Live" lampooned the Dallas-based airline's technology and service. The carrier will now answer to U.S. Congress on Thursday when Chief Operating Officer Andrew Watterson testifies before the Senate Commerce Committee. In October, Jordan, who started his career at Southwest in 1988 as a computer programmer, put Watterson in charge of the airline's operations. Last week, Jordan also named a chief information officer who will help manage the airline's technology investments, upgrades and system maintenance.

☆ Southwest plans to tell Senate it's confident in its schedule after holiday meltdown
▼ + stars: | 2023-02-08 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Southwest Airlines plans to apologize before a Senate panel on Thursday over the carrier's December meltdown that stranded hundreds of thousands of travelers around Christmas. "In hindsight, we did not have enough winter operational resilience," Chief Operating Officer Andrew Watterson said in written testimony, which was reviewed by CNBC, ahead of Senate Commerce Committee hearing. The debacle made for an $800 million pretax hit and drove the carrier to a net loss last quarter. Watterson plans to tell the committee that the carrier has made short-term improvements to communicate more easily with crews when things go wrong and has improved tools that keep track of the operation's stability. With those mitigation tools, "we are confident in our flight network and the schedules we have published for sale," Watterson plans to say, according to the testimony.

☆ Southwest Airlines reimbursed a couple for a $500 used car they bought to drive home after their flight was canceled
▼ + stars: | 2023-02-06 | by ( Bianca Giacobone | ) www.businessinsider.com time to read: +2 min

A couple bought a used car to drive home after being stranded by Southwest flight cancellations. The airline reimbursed the couple $500 for the car. Southwest canceled more than 16,000 flights in late December, and is still processing refunds. "We had an instance where a couple bought a $500 used car to drive home. We covered it and bought them a car, so to speak."

☆ Southwest to testify at U.S. Senate hearing after meltdown
▼ + stars: | 2023-02-03 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

REUTERS/Alyssa Pointer/File PhotoWASHINGTON, Feb 3 (Reuters) - Southwest Airlines (LUV.N) Chief Operating Officer Andrew Watterson will testify on Feb. 9 before the U.S. Senate Commerce Committee after a holiday meltdown forced the budget carrier to cancel thousands of flights. The hearing titled "Strengthening Airline Operations and Consumer Protections" will also include Southwest Airlines Pilots Association President Captain Casey Murray, Sharon Pinkerton, a senior official with Airlines for America, an industry group, and Paul Hudson, who heads Flyers' Rights, a passenger advocacy organization. The hearing will review causes and impacts of recent air travel disruptions including the Southwest December holiday operational woes that resulted in more than 16,000 flight cancellations. Southwest Chief Executive Bob Jordan has repeatedly apologized for the mass cancellations and said the carrier is looking at all options to prevent a repeat. The U.S. Transportation Department (USDOT) is investigating whether Southwest engaged in "unrealistic scheduling of flights" in December.

☆ Southwest faces Senate hearing next week following holiday meltdown
▼ + stars: | 2023-02-03 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

John and Lori Ingoldsby, who drove to Denver after the first leg of their flight on Southwest Airlines was canceled, wait for a flight to finish their trip at Denver International Airport on December 28, 2022 in Denver, Colorado. Southwest Airlines ' chief operating officer, Andrew Watterson, will face questions from a Senate panel next Thursday about the carrier's holiday meltdown that stranded hundreds of thousands of travelers. Southwest said the hearing date overlapped with "a previous commitment" for CEO Bob Jordan. The incident has drawn increased scrutiny from Washington and capped a year of on-and-off disruptions in air travel, due to bad weather, staffing and technology issues. Sen. Maria Cantwell, D-Wash., the committee chair, had previously said she planned to hold a hearing on flight disruptions following Southwest's holiday travel chaos.

Southwest, which also reported a loss in the fourth quarter, estimates a revenue hit of between $300 million and $350 million in the first quarter. A Southwest Airlines jetliner departs from Chicago Midway International Airport in Chicago, Illinois, U.S., December 27, 2022. He said while a recessionary economic environment tends to make companies de-prioritize spending on technology, Southwest cannot afford to do that. The meltdown led to an adjusted loss of $226 million, or 38 cents a share, in the quarter through December, robbing it of the gains from booming holiday travel demand. Rival carriers United Airlines (UAL.O) and Delta Air Lines (DAL.N) American Airlines (AAL.O) have all reported higher-than-expected earnings for the quarter.

Southwest, which also reported a loss in the fourth quarter, said it expects a revenue hit of between $300 million and $350 million in the first quarter. "Thus far in January 2023, the company has experienced an increase in flight cancellations and a deceleration in bookings, primarily for January and February 2023," Southwest said. The meltdown led to an adjusted loss of $226 million, or 38 cents a share, in the quarter through December, robbing it of the gains from booming holiday travel demand. Rival carriers United Airlines (UAL.O) and Delta Air Lines (DAL.N) American Airlines (AAL.O) have all reported higher-than-expected earnings for the quarter. For 2023, Southwest has forecast "solid profits" with year-over-year margin expansion.

☆ Southwest posts $220 million loss last quarter after holiday meltdown
▼ + stars: | 2023-01-26 | by ( Leslie Josephs | ) www.nbcnews.com time to read: +2 min

Southwest Airlines reported a $220 million loss for the fourth quarter after the carrier’s holiday meltdown drove up expenses and cost it millions in revenue during what was expected to be the busiest travel period since the pandemic began. It forecast a first-quarter loss, citing current “revenue and cost trends,” while analysts have been anticipating a per-share profit of 19 cents for the current quarter, based on estimates compiled by Refinitiv. Southwest earlier this month said it canceled around 16,700 flights between Dec. 21 through Dec. 31 after severe winter weather swept through the U.S. The airline on Thursday said the mass cancellations hit its pretax results by $800 million, in line with its estimate earlier this month of a hit between $725 million and $825 million. Here’s how Southwest performed in the fourth quarter, compared with Wall Street expectations according to Refinitiv consensus estimates:Adjusted loss per share: 38 cents vs an expected loss of 12 cents.

☆ Southwest Airlines forecasts first-quarter loss on cancellations impact
▼ + stars: | 2023-01-26 | by ( Kannaki Deka | ) www.reuters.com time to read: +2 min

Southwest, which also reported a loss in the fourth quarter, said it expects a revenue hit of between $300 million and $350 million in the first quarter. "Thus far in January 2023, the company has experienced an increase in flight cancellations and a deceleration in bookings, primarily for January and February 2023," Southwest said. Operating revenue for the March quarter, when travel demand tends to slow, is expected to rise 20% to 24% year-over-year. On the other hand, expenses surged nearly 30% to $6.56 billion, in part due to the impact from cancellations. For 2023, Southwest has forecast "solid profits" with year-over-year margin expansion.

☆ Transportation Department probe will look at whether Southwest overscheduled flights
▼ + stars: | 2023-01-26 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Phil-Helsel-Circle-Byline-Template.Jpg | Phil Helsel | ) www.nbcnews.com time to read: +1 min

The U.S. Department of Transportation is in the initial phases of an investigation into Southwest Airlines' travel meltdown, and the agency will look at whether executives overscheduled flights, a spokesperson said. The Department of Transportation is “probing whether Southwest executives engaged in unrealistic scheduling of flights which under federal law is considered an unfair and deceptive practice,” the agency spokesperson said. Southwest Airlines did not immediately respond to a request for comment Wednesday evening. “DOT will leverage the full extent of its investigative and enforcement power to ensure consumers are protected and this process will continue to evolve as the Department learns more,” the department spokesperson said Wednesday. Transportation Secretary Pete Buttigieg called the cancellations unacceptable and said his department would look at its scheduling system.

☆ Southwest Airlines is testing a software fix it developed after the Christmas travel meltdown
▼ + stars: | 2023-01-26 | by ( Gregory Wallace | ) edition.cnn.com time to read: +3 min

Washington CNN —Southwest Airlines said it is testing software fixes that the company developed after its Christmas travel meltdown, as the airline faces multiple federal investigations. The software fixes are an “upgrade,” rather than a replacement of the crew scheduling system, Southwest executives said on a conference call with reporters Thursday. The company decided to keep the underlying software system because it “generally worked as designed” even during the meltdown, CEO Bob Jordan said. “We haven’t even talked cost, so I don’t know if it’s going to cost us anything or not,” said Southwest Chief Operations Officer Andrew Watterson. That external report should be delivered in the coming weeks and “we will attack it with a sense of urgency,” Jordan said.

☆ Southwest forecasts lingering losses as bookings slow in wake of holiday meltdown
▼ + stars: | 2023-01-26 | by ( Leslie Josephs | ) www.cnbc.com time to read: +4 min

Analysts had been anticipating a per-share profit of 19 cents for the first quarter, based on estimates compiled by Refinitiv. Southwest's fourth-quarter loss compares with a $68 million profit during the same period in 2021. Here's how Southwest performed in the fourth quarter, compared with Wall Street expectations according to Refinitiv consensus estimates:Adjusted loss per share: 38 cents vs an expected loss of 12 cents. 38 cents vs an expected loss of 12 cents. Despite the rocky end of the year, Southwest reported a $539 million profit for 2022.

☆ Southwest Airlines gave away as many as 50 billion airline miles after its holiday travel meltdown
▼ + stars: | 2023-01-26 | by ( Taylor Rains | ) www.businessinsider.com time to read: +3 min

Southwest Airlines offered 25,000 Rapid Rewards points to people affected by its holiday meltdown. The carrier sent points to an estimated 2 million people, putting the value at about $750 million. The low-cost carrier started sending out 25,000 Rapid Rewards points to qualifying customers in early January. Southwest sent the points to around two million customers, company CEO Bob Jordan told CNBC. The decision to offer free frequent flier points was an effort by Southwest to repair the damage created by its poor December performance.

☆ Southwest Airlines CEO breaks down Christmas debacle and Q4 earnings
▼ + stars: | 2023-01-26 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouthwest Airlines CEO breaks down Christmas debacle and Q4 earningsBob Jordan, Southwest Airlines CEO, joins 'Squawk on the Street' to discuss the company's quarterly earnings results, how customers know things will change at Southwest Airlines, and more.

☆ Southwest CEO reaffirms to customers that their software is back at capacity
▼ + stars: | 2023-01-26 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSouthwest CEO reaffirms to customers that their software is back at capacityCNBC's Phil Lebeau joins 'Closing Bell' to discuss his interview with Southwest CEO Bob Jordan about how the company plans to mitigate future system meltdowns.

☆ Southwest CEO maps out a recovery after holiday meltdown: 'We have work to do'
▼ + stars: | 2023-01-25 | by ( Leslie Josephs | ) www.cnbc.com time to read: +8 min

Tayfun Coskun | Anadolu Agency | Getty ImagesSouthwest CEO Bob Jordan's message, after a holiday meltdown derailed the travel plans of millions, is clear: "I can't say it enough. The low-cost airline is working with General Electric to improve the capabilities of software that helps Southwest work out crew reassignments. Southwest said it offered premium pay to flight attendants and $45 million in "gratitude pay" to pilots because of the meltdown. He said that a recent fare sale was successful and that many customers are redeeming the frequently flyer points for Southwest flights. "This payment constitutes full and final settlement of your claim with Southwest Airlines."

☆ Southwest Airlines to pay pilots millions in bonuses as 'gratitude' for working during meltdown: CNN
▼ + stars: | 2023-01-23 | by ( Marielle Descalsota | ) www.businessinsider.com time to read: +3 min

Southwest will pay pilots an estimated $45 million in bonuses for working during the service meltdown last year, per CNN. Some 9,400 pilots are expected to be paid 50% of their regular pay, CNN reported. Southwest employs some 9,400 pilots who are expected to be compensated 50% of their regular pay, CNN reported, citing a message sent by the Southwest Airlines Pilots Association to a member. These bonuses, or "gratitude pay," are meant to compensate pilots for working through the airline's service meltdown last December, the report states. Southwest Airlines CEO Bob Jordan took responsibility for the carrier's operational meltdown over the recent holiday season.

☆ Southwest's CEO says it 'just couldn't keep up with the volume' of problems that caused its holiday chaos: report
▼ + stars: | 2023-01-15 | by ( Jyoti Mann | ) www.businessinsider.com time to read: +3 min

Southwest CEO Bob Jordan told The New York Times that winter storms caused plane engines to freeze. He denied a tech failure caused the meltdown that forced almost 17,000 flights to be canceled. Bob Jordan told the newspaper that its problems quickly mounted after the storm hit and that it couldn't keep up with the volume of cancellations and delays. We just couldn't keep up with the volume — volume we'd never seen before." Jordan denied that its technology failed and told the Times it had just experienced an "overwhelming volume."

☆ Southwest CEO says all options 'on the table' after carrier's meltdown
▼ + stars: | 2023-01-13 | by ( ) www.nbcnews.com time to read: +3 min

Southwest Airlines is looking at all options to ensure the operational meltdown it suffered last month is not repeated, Chief Executive Bob Jordan said on Thursday. The Dallas-based carrier has been dealing with customer outrage and regulatory scrutiny after a systems meltdown last month left thousands of passengers stranded. Southwest has hired consultancy Oliver Wyman to investigate the disruption, Jordan told Reuters in an interview. Jordan said New York-based Oliver Wyman is interviewing company staff and union members to reconstruct the recent debacle in order to identify gaps in the carrier’s operations. He said last month’s disruption was not due to the structure, but said the airline could set up more crew bases if Oliver Wyman recommends that.

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