The holiday season was not kind to Southwest Airlines, who reported a quarterly loss of $800 million due to a service meltdown.
The airline’s CEO, Gary Kelly, broke down the details in a video released on CNBC Television. He attributed the loss to a “perfect storm” of problems that caused a massive backlog of flights during the holidays.
The meltdown caused a ripple effect that impacted the entire airline industry. American Airlines reported profits, while Southwest lost millions.
The loss was a major setback for Southwest, who had previously reported a record-breaking third quarter earnings.
The airline is now warning that more losses are ahead, as they continue to deal with the fallout from the meltdown.
Southwest is taking steps to prevent similar problems in the future, including better communication with customers and improved systems to ensure that flights are on time.
It remains to be seen how the airline will recover from the losses, but it is clear that the holiday travel meltdown had a major impact on Southwest’s bottom line.
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