Southwest Airlines' Weekend Woes Spill Over Into Monday. The Stock Is Falling. | LUV Message Board Posts


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Msg  800 of 809  at  10/11/2021 4:44:22 PM  by

jerrykrause


Southwest Airlines' Weekend Woes Spill Over Into Monday. The Stock Is Falling.

 

Southwest Airlines' Weekend Woes Spill Over Into Monday. The Stock Is Falling.

 
 

Southwest Airlines stock slipped in early trading, after the carrier canceled more than 1,800 flights over the weekend and the problems spilled over into Monday.

The Dallas-based airline (ticker: LUV) canceled more than 1,100 flights on Sunday alone, or 30% of its schedule, according to data from flight tracker FlightAware . The problems continued into Monday, with a further 360 flights canceled and 600 delayed as of 3:50 p.m. ET. The airline's stock was 1.2% lower in late morning trading, recovering from a steeper initial drop.

The company blamed bad weather and air-traffic control conditions in Florida for the cancellations. Severe weather led to the Federal Aviation Administration (FAA) imposing an air-traffic management program on Friday, leading to cancellations and stranded passengers and crew members.

However, the FAA said flight delays and cancellations occurred for a "few hours" on Friday afternoon due to severe weather, military training, and limited staffing in one area of the Jacksonville en route center.

"No FAA air traffic staffing shortages have been reported since Friday," it said in a tweet Sunday. "Some airlines continue to experience scheduling challenges due to aircraft and crews being out of place."

In an email to Barron's Monday, Southwest said the Friday evening disruptions "created a ripple within our system through the holiday weekend," adding that the company spent the Columbus Day weekend "working to recover from the high number of displaced crews and aircraft."

"Although we have some new weather in parts of our system, today's operation has vastly improved from the weekend, with a much smaller number of cancellations linked to our weekend recovery efforts," Southwest added.

By comparison, other major U.S. carriers were less affected. American Airlines (AAL) canceled 167 flights on Sunday, or 5% of its schedule, and had canceled 41 flights early on Monday.

Southwest cut its fall flight schedule after mass cancellations and staff shortages in the summer. The carrier said the trimmed schedule would help sync up its staffing with operations and complete more hiring before the main holiday travel season.

In a message to employees Sunday, Alan Kasher, Southwest's executive vice president for daily operations, said: "Although we've made schedule adjustments leading into the fall, our route system has not fully recovered—that will take time. So, we still find ourselves with fewer frequencies between major airports to reroute delayed or canceled customers."

 


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