Connect with us

Hi, what are you looking for?


Southwest Airlines customers are keeping loyal despite the holiday meltdown

southwest airlines q3 earnings guidance

Southwest Airlines Co (NYSE: LUV), on Thursday, disappointed both in terms of its quarterly results and future guidance. Shares are down 5.0% this morning.

CEO Jordan apologised to customers

The world’s largest low-cost air carrier had to cancel thousands of flights this holiday season as Invezz reported here, resulting in an $800 million hit. Apologising for the meltdown to customers this morning on CNBC’s “Squawk on the Street”, CEO Bob Jordan said:

My full focus is on taking care of our customers and employees and doing everything it takes to ensure that this doesn’t happen again. We’ve added a full scale look at our de-icing procedures, we’ve added extra crew scheduling staffing.

Despite the debacle, though, customers are keeping loyal to Southwest Airlines and bookings, both on the leisure and business front, are still strong, the Chief Executive added.

Southwest Airlines’ guidance for Q1

CEO Jordan agreed that there were spots of improvement that the air carrier is committedly working on but dubbed the recent narrative that Southwest Airlines isn’t investing enough in technology “incorrect”.

We had an absolute cascade of flight cancellations, that turned into a lot of aircraft routing and crew routings. It overwhelmed our technical, manual, and process ability. That the issue, not the software. We’ve actually got a fix with GE Digital.

Southwest Airlines plans on investing $1.30 billion in technology this year. Nonetheless, shareholders are agitated because the airline is forecasting a loss in its current financial quarter as well.

The airline stock is now down more than 10% versus its recent high.

Southwest Airlines Q4 earnings snapshot

  • Swung to a $220 million net loss or 37 cents per share
  • That compares to $68 million net income a year ago
  • Adjusted per-share loss came in at 38 cents
  • Revenue jumped about 22% YoY to $6.17 billion
  • Consensus was 7 cents loss on $6.22 billion revenue

Load factor at 83.5% was also shy of Street estimates, as per the earnings press release. Wall Street still has a consensus “overweight” rating on Southwest Airlines.

The post Southwest Airlines customers are keeping loyal despite the holiday meltdown appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Genesis Trading, the cryptocurrency brokerage and lender that halted customer withdrawals in the aftermath of FTX collapse, believes it can sort out its financial...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023