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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Association (SWAPA) said the union has been sounding the alarm about the carrier's crew scheduling technology and "outdated" operational processes for years.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.

☆ Biden says airlines can’t treat kids like 'piece of baggage'
▼ + stars: | 2023-02-08 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

Feb 7 (Reuters) - President Joe Biden on Tuesday harshly criticized U.S. airlines saying they were charging families unfair fees and vowing to implement new consumer protections. "Baggage fees are bad enough – airlines can’t treat your child like a piece of baggage." Airlines for America (A4A), a group representing Delta Air Lines (DAL.N), United Airlines (UAL.O), American Airlines (AAL.O), Southwest Airlines (LUV.N) and others said Tuesday its member carriers do not charge fees to sit together. Biden touted regulations the Transportation Department is drafting to make "airlines show you the full ticket price upfront and refund your money if your flight is canceled or delayed." Biden in September touted his administration's "cracking down" on U.S. airlines to improve treatment of passengers after they updated customer service plans.

☆ 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.

☆ FedEx, Southwest planes believed under 100 feet apart -NTSB
▼ + stars: | 2023-02-06 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

NTSB Chair Jennifer Homendy told Reuters the "near miss" incident could have resulted in "terrible tragedy." Homendy said it appears likely the FedEx plane overflew the Southwest plane during their takeoff role momentarily and then Southwest passed beneath the FedEx plane again as its speed increased on takeoff. The FAA issued a takeoff clearance to Southwest when FedEx was about 3.32 nautical miles from the end of the runway. "When FedEx said Southwest abort, they were 1,195 feet (364 m) down the runway and climbing." The NTSB has investigated 17 runway incursion incidents since 2013, including two from last summer that remain under investigation.

☆ U.S. investigates aborted FedEx landing in Texas, two planes cleared for same runway
▼ + stars: | 2023-02-04 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

The two planes came close to colliding when the FedEx plane was forced to overfly the Southwest plane to avoid a crash, two sources briefed on the matter told Reuters. "Shortly before the FedEx aircraft was due to land, the controller cleared Southwest Flight 708 to depart from the same runway," the Federal Aviation Administration (FAA) said. The NTSB separately said it was investigating "a possible runway incursion and overflight involving airplanes from Southwest Airlines and FedEx." The Southwest plane had not yet departed when the FedEx plane was nearing the runway. The Cancun, Mexico-bound Southwest flight, a Boeing 737-700, safely departed and landed at 9:47 a.m.

☆ 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.

☆ Airlines cancel over 1,400 U.S. flights as ice storm hits multiple states
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

Feb 1 (Reuters) - Airlines canceled over 1,400 flights in the United States on Wednesday, after an ice storm hit states from Texas to West Virginia. A total of 1,467 flights within, into or out of the United States were canceled, while 527 flights were delayed as of 6.48 a.m. The Federal Aviation Administration (FAA) on Tuesday warned in a tweet that travelers could expect to see some snowy conditions in certain areas including Dallas, Fort Worth and Memphis, which could delay certain flights. loadingAirlines canceled nearly 1,400 flights in the United States on Wednesday, after a severe winter storm hit their operations in certain regions. Low-cost carrier Southwest Airlines Co (LUV.N) led cancellations with 487 flights, while Fort Worth, Texas-based peer American Airlines Group Inc (AAL.O) closely followed, canceling nearly 480 flights.

☆ U.S. airline group blasts White House competition efforts
▼ + stars: | 2023-02-01 | by ( David Shepardson | ) www.reuters.com time to read: +3 min

[1/3] Passengers are seen at the Southwest Airlines check-in area at Hartsfield-Jackson Atlanta International Airport ahead of the Fourth of July holiday in Atlanta, Georgia, U.S., July 1, 2022. REUTERS/Elijah NouvelageWASHINGTON, Feb 1 (Reuters) - A group representing major U.S. airlines on Wednesday blasted White House proposals on competition in the industry as "short-sighted" and said they would "drive-up costs and reduce choices" for consumers. The Biden administration has taken steps it says will inject more competition into the airline industry. A4A on Wednesday said "the White House should get the facts straight amid efforts to impose new policies and regulations on our nation’s aviation industry." The White House declined to comment.

☆ How Southwest can win back its angry, stranded customers
▼ + stars: | 2023-02-01 | by ( Chris Isidore | ) edition.cnn.com time to read: +7 min

New York CNN —Southwest Airlines’ customers are furious about the company’s Christmas week service meltdown. Southwest said that it lost about $350 million in ticket sales for January and February because people have avoided bookings on the airline. No wonder: the holidays are perhaps the worst time of the year to strand customers. One group that has clearly not forgiven Southwest as of yet is airline investors. Southwest (LUV) shares closed Tuesday down only 1% from where they closed December 19, the day before the meltdown started.

☆ Here are Monday's biggest analyst calls: Tesla, Apple, Netflix, Amazon, Chevron, Meta, Shopify & more
▼ + stars: | 2023-01-30 | by ( Michael Bloom | ) www.cnbc.com time to read: +8 min

Morgan Stanley upgrades Colgate-Palmolive to overweight from equal weight Morgan Stanley said in its upgrade of Colgate that it sees an attractive entry point. "We upgrade shares from Neutral to Buy as we see the last of tough comparables for SHOP subsiding entering '23." Bank of America reiterates Meta as neutral Bank of America says it's cautious heading into Meta earnings on Wednesday. Berenberg upgrades Tesla to buy from hold Berenberg said in its upgrade of Tesla that "factory innovations support long-term margins." Morgan Stanley reiterates Southwest Airlines as overweight Morgan Stanley says it's sticking with shares of the airline.

☆ U.S. airlines cancel over 1,000 flights over winter storm
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +1 min

Jan 30 (Reuters) - More than 1,000 Monday flights into or out of the United States have been canceled due to a severe winter storm, with about half of those coming from Southwest Airlines Co (LUV.N). A total of 1,019 flights were canceled as of 6:00 pm ET, according to flight-tracking service FlightAware. The company has scrapped about 12% of its Monday schedule, while American Airlines Group Inc (AAL.O) has canceled 6%, or 200 flights. For Tuesday so far, 797 flights are scheduled to be canceled into or out of the United States. Southwest Airlines and other major U.S. airlines have issued winter weather waivers.

☆ Wall Street closes green as GDP data eases recession worries
▼ + stars: | 2023-01-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] People stand by the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2023. Fourth-quarter earnings season has hit full stride, with more than one fourth of the companies in the S&P 500 having reported. Analysts now see aggregate fourth quarter earnings falling 2.7%, worse than the 1.6% year-on-year decline seen on Jan. 1, but an improvement over the 3% annual decline as of Wednesday, per Refinitiv. Of the 11 major sectors of the S&P 500, all but consumer staples (.SPLRCS) advanced. The S&P 500 posted 23 new 52-week highs and no new lows; the Nasdaq Composite recorded 111 new highs and 32 new lows.

☆ Wall Street gains as solid GDP data offsets signs of economic weakness
▼ + stars: | 2023-01-26 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

[1/2] People stand by the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2023. Fourth-quarter earnings season has hit full stride, with more than one fourth of the companies in the S&P 500 having reported. Analysts now see aggregate fourth quarter earnings falling 2.7%, worse than the 1.6% year-on-year decline seen on Jan. 1, but an improvement over the 3% annual decline as of Wednesday, per Refinitiv. Among the 11 major sectors of the S&P 500, energy (.SPNY) led the percentage gainers, boosted by rising crude prices due to signs of increasing demand from China. Tesla Inc (TSLA.O) provided the most upside muscle to the S&P 500 and the Nasdaq, its shares jumping 9.4% in the wake of its earnings report.

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.

Separately, the Commerce Department said gross domestic product (GDP) increased at an annualized rate of 2.9% in the fourth quarter, above expectations of a 2.6% rise. "It's clear the economy remains relatively strong in the face of the Fed's efforts, suggesting they're succeeding." Growth stocks have been on a winning spree in January, with the S&P 500 Growth index (.IGX) recouping more than half of the losses logged last month. Keeping a lid on gains for Dow e-minis was chemical firm Dow Inc (DOW.N) that slid 3.3% after it missed Wall Street estimates for quarterly profit, hurt by higher energy costs, weaker demand and supply chain disruptions. ET, Dow e-minis were up 81 points, or 0.24%, S&P 500 e-minis were up 22.25 points, or 0.55%, and Nasdaq 100 e-minis were up 121.75 points, or 1.03%.

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 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.

☆ Jim Cramer's top 10 things to watch in the market Thursday: GDP beat, Tesla records, Macao recovery
▼ + stars: | 2023-01-26 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

Credit Suisse cuts price target on Club holding to $285 per share from $365. On the Tesla earnings call, Musk also defends his ownership of Twitte r. Says he's not worried about Tesla brand and reputation due to his political tweets. LVS price target raised to $65 from $53. Oppenheimer out with a hilarious Alphabet (GOOGL) price target cut to $130 per share from $135; keeps outperform (buy) rating. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ U.S. Southwest flight cancellation probe looks at scheduling practices
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Jan 25 (Reuters) - The U.S. Transportation Department (USDOT) said on Wednesday it is in the initial phase of its investigation into Southwest Airlines' (LUV.N) massive December flight cancellations. The department's investigation was previously announced but USDOT disclosed Wednesday it is reviewing whether "Southwest executives engaged in unrealistic scheduling of flights which under federal law is considered an unfair and deceptive practice." Southwest canceled more than 16,000 flights in December citing a severe winter storm and the company's outdated technology. Reporting by David Shepardson Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Earnings Exchange: IBM, CSX, AAL & LUV
▼ + stars: | 2023-01-25 | 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 EmailEarnings Exchange: IBM, CSX, AAL & LUVDelano Saporu, New Street Advisors CEO, joins ‘The Exchange’ to discuss a few stocks ahead of earnings, including IBM, CSX, Southwest and American Airlines.

☆ 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."

☆ Winter storm cancels hundreds of US flights, with Southwest again hit hardest
▼ + stars: | 2023-01-25 | by ( Chris Isidore | ) edition.cnn.com time to read: +2 min

New York CNN —Bad weather canceled hundreds of flights on Wednesday, with Southwest Airlines once again hit particularly hard. As of 10:30 am ET the cancellations had totaled 482 flights to, from or within the United States. About half of those — 235 — were Southwest flights. The 235 Southwest flights canceled Wednesday represent only about 6% of the airline’s schedule. Another advantage for the travelers affected Wednesday: January, by contrast, is one of the slowest travel periods of the year in the United States.

☆ Earnings playbook: What investors can expect out of Tesla, Microsoft and Boeing
▼ + stars: | 2023-01-22 | by ( Fred Imbert | ) www.cnbc.com time to read: +11 min

Tuesday Johnson & Johnson is set to report earnings before the bell, followed by a conference call at 8:30 a.m. What history shows: Johnson & Johnson has beaten earnings expectations 95% of the time, according to Bespoke Investment Group. Wednesday Boeing is set to report earnings before the bell, followed by a call with analysts at 10:30 a.m. What history shows: FactSet data shows Boeing has posted a greater-than-expected loss in the last five quarters. Tesla is set to report earnings after the close, with management set to hold a call at 5:30 p.m.

☆ Did the economy end 2022 with a bang or a whimper?
▼ + stars: | 2023-01-22 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +7 min

But the United States economy still seems to be chugging along just fine after experiencing a hiccup in the first half of 2022. Despite worries about weaker consumer spending during the holidays, economists are forecasting solid growth for the fourth quarter. Yearning for earningsMore blue chip companies will report fourth quarter results (and perhaps give guidance about the first quarter of 2023 and beyond) this week. But according to FactSet senior earnings analyst John Butters, earnings for the tech sector are expected to fall nearly 10% in the fourth quarter compared to the fourth quarter of 2021. Verizon (VZ), Johnson & Johnson (JNJ), Travelers (TRV), 3M (MMM), Boeing (BA), Dow (DOW), Visa (V), Chevron (CVX) and American Express (AXP).

☆ Get ready for a deluge of data next week that will shape the Fed's next moves
▼ + stars: | 2023-01-21 | by ( Zev Fima | ) www.cnbc.com time to read: +8 min

Within the portfolio, we'll get the latest earnings from Danaher (DHR), Halliburton (HAL), and Johnson & Johnson (JNJ) on Tuesday before the opening bell. While the results will be important as always, we are most interested in the earnings call with analysts and investors. Housing Starts fell 1.4% in December to a seasonally adjusted annual rate of 1.38 million, slightly above the 1.36 million expected. Building permits dropped 1.6% in December to a seasonally adjusted annual rate of 1.33 million, below expectations of 1.37 million. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

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