Southwest Airlines pledged on Tuesday to improve its winter operations and modernize its technology after a major holiday crisis prompted the cancellation of nearly 17,000 flights and stranded passengers.
Specifically, the Dallas-based carrier plans to buy more icebreaker trucks, engine covers and heaters, as well as hire more winter staff.
In addition, Southwest said it will invest more in its technology, budgeting $1.3 billion for upgrades, maintenance and other costs. The airline also committed to upgrading its crew scheduling system and customer phone systems to handle higher call volumes.
Winter storm Elliott – that cause Terrible cold temperatures sweep parts of the United States during the holiday travel season – creating a host of problems for the Southwest.
While most airlines quickly resumed operations after the storm, Southwest problems to be faced such as outdated technology and inappropriate crew management issues have paved the way for widespread flight cancellations.
Southwest CEO Bob Jordan said at a JPMorgan investor conference Tuesday that the storm has hampered Southwest operations at two of its main airports: International Airport Denver (DEN) and Chicago’s Midway International Airport (MDW).
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“This ultimately limited our ability to keep up with the pace and level of disruption,” explains Jordan.
Southwest is still reeling from the December setback. For first-quarter earnings of 2023, the airline is forecasting up to $350 million in revenue, according to its latest report. filed with the Securities and Exchange Commission.
That happens after the carrier report net loss of $220 million in the final quarter of 2022, as the crisis cost Southwest $800 million in pretax earnings.
Congress is also investigating the meltdown. Andrew Watterson, executive vice president and chief commercial officer, Southwest, witness before the Senate Committee on Commerce, Science, and Transportation in February.
Despite the damage from natural disasters during the holiday season, Jordan said the carrier’s booking trends for the second quarter “looked stable,” with leisure travel demand now closely reflecting the level of before the pandemic in 2019.
