Due to recent delivery delays at The Boeing Company (Boeing), we are further reducing planned 2023 aircraft deliveries to 70 from 90, resulting in an approximate one-point decrease in year-over-year planned 2023 capacity. Our goal remains to manage inflationary cost increases and maintain our competitive cost advantage. "While we are mindful of the uncertain economic environment, demand for domestic air travel remains strong, thus far. We are glad we can reward our People, and we remain focused on negotiations of the three remaining open contracts. Currently, this brings us to contract ratification or tentative agreement with six workgroups represented by collective bargaining agreements in the past six months. "We recently reached a tentative agreement with the Transport Workers Union Local 550 (TWU 550), representing our Meteorologists, and I commend the spirit of cooperation by both Negotiating Committees. We continue to make operational investments and remain intensely focused on running a safe, reliable, and efficient operation while delivering our legendary Customer Service. During first quarter 2023, we completed our reviews of the December 2022 operational disruption and released the report summary and action plan publicly at We expect to meet our goals to complete the action plan by winter 2023. Southwest ranked number two in domestic ontime performance year-to-date through March 2023 3, as our People successfully navigated nine named storms. "Our operational performance was also strong in first quarter 2023. Despite that, travel demand and revenue trends in March 2023 were strong and resulted in solid profitability for the month and record first quarter revenues. The majority of this impact was driven by a negative revenue impact of approximately $325 million, as a result of cancellations of holiday return travel and a deceleration in bookings for January and February 2023 travel. Liquidity 2 of $12.7 billion, well in excess of debt outstanding of $8.0 billionīob Jordan, President and Chief Executive Officer, stated, "As expected, we incurred a first quarter 2023 net loss that resulted from the negative financial impact of approximately $380 million pre-tax, or $294 million after-tax, related to the December 2022 operational disruption.Record first quarter operating revenues of $5.7 billion.Net loss, excluding special items 1, of $163 million, or $0.27 loss per diluted share.Net loss of $159 million, or $0.27 loss per diluted share.(NYSE: LUV) (the "Company") today reported its first quarter 2023 financial results: Revenue loss from the disruptions is expected to be between $400 million and $425 million, it said, adding the net loss forecast includes the increase in operating expenses from reimbursements, value of 'Rapid Rewards' points offered as a gesture of goodwill to customers, and extra pay for employees.DALLAS, Ap/PRNewswire/ - Southwest Airlines Co. Southwest said on Friday that holiday cancellations were likely to have cut its capacity by about 6% in the fourth quarter compared to 2019, roughly 4 points lower than its previous forecast. ![]() ![]() "Southwest is providing a really important service to American consumers." market needs a low fare point-to-point operator with a single cabin," Prigoff told Reuters. Jonathan Prigoff, analyst with Artisan Partners Global Value Team said while the meltdown was "unfortunate", it has not changed Southwest's "ultimate" investment value. Some investors, however, are still standing by the company. Southwest Chief Executive Bob Jordan said in a video posted on the company's website on Thursday, following criticism from the union, the airline had made "great progress" in processing tens of thousands of refunds and reimbursements, and delivered the vast majority of bags that went missing.īernstein analyst David Vernon said in a note earlier this week, "it may take time for Southwest to repair its brand perception with investors." "It is unclear to what extent this episode leads management to upgrade flight operations software, establish crew bases or the like," Citi Research analyst Stephen Trent said in a note.īefore the recent crisis, Southwest had cultivated a reputation for reliable customer service, humorous flight crews and low-cost flights.
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