Southwest Airlines Co. is ready to move on from the technology meltdown that upended operations back in December. That doesn’t mean its reputation has recovered.
(Bloomberg) — Southwest Airlines Co. is ready to move on from the technology meltdown that upended operations back in December. That doesn’t mean its reputation has recovered.
“There is definitely work to do to get confidence in Southwest back to where it was pre-pandemic,” Chief Executive Officer Bob Jordan said in an interview Thursday after the carrier reported first-quarter results. “We’re focused on that every single day.”
The carrier was blasted by passengers, lawmakers and regulators over the late-year chaos, when its systems were overwhelmed by a winter storm, forcing the cancellation of more than 16,000 flights during the crucial holiday period. Southwest on Thursday said it faced a $380 million hit in the quarter in part because customers rebooked their travel with other airlines in January and February.
See also: Southwest Loss Is Bigger Than Expected After December Chaos
The company has since completed nearly all reimbursements to affected travelers and it’s strengthening its focus on ensuring on-time operations, Jordan said.
As to whether passengers are avoiding Southwest, the CEO said that was no longer the case by March. While the company missed Wall Street’s profit expectations, it reported record revenue for the first quarter and sees strong demand going forward.
“I do hear anecdotes” about customers pledging not to fly Southwest, Jordan said. “It doesn’t show up in the results.”
–With assistance from Julie Johnsson.
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