Southwest posts $220 million loss last quarter after holiday meltdown

Southwest Airlines reported a $220 million loss for the 4th fourth aft the carrier's holiday meltdown drove up expenses and outgo it millions successful gross during what was expected to beryllium the busiest question play since the pandemic began.

It forecast a first-quarter loss, citing existent "revenue and outgo trends," portion analysts person been anticipating a per-share nett of 19 cents for the existent quarter, based connected estimates compiled by Refinitiv.

Southwest earlier this period said it canceled astir 16,700 flights betwixt Dec. 21 though Dec. 31 aft terrible wintertime upwind swept done the U.S.

The hose connected Thursday said the wide cancellations deed its pretax results by $800 million, successful enactment with its estimation earlier this period of a deed betwixt $725 cardinal and $825 million.

Southwest shares were down astir 3% successful premarket trading aft reporting results.

Here's however Southwest performed successful the 4th quarter, compared with Wall Street expectations according to Refinitiv statement estimates:

• Adjusted nonaccomplishment per share: 38 cents vs an expected nonaccomplishment of 12 cents.
• Total revenue: $6.17 cardinal vs an expected $6.16 billion.

Rival airlines had mostly recovered astir Christmas aft the wintertime weather, but Southwest's exertion was unable to process each the formation changes and crews had to telephone the bearer to get rescheduled. The bearer decided to scrap astir of its flights successful the pursuing days to reset its operation, CEO Bob Jordan said earlier this month.

The bearer has been processing tens of thousands of refunds and analyzable reimbursements for travelers who booked flights connected different airlines to get to their destinations.

Southwest's executives volition clasp a telephone with analysts and media astatine 12:30 ET. They are apt to look questions astir immoderate further costs and governmental fallout from its missteps arsenic good arsenic an update connected exertion updates that purpose to forestall different meltdown.

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