Southwest Airlines' Q1 Losses Expected to Improve Despite Operational Issues.
Originally Published 2 years ago — by CNBC
Southwest Airlines reported a wider-than-expected loss of $159 million in Q1 2021, with the financial impact of its holiday meltdown stretching into 2023. The carrier had canceled over 16,000 flights in December 2020 due to staffing software issues during coast-to-coast storms, resulting in a $325 million revenue impact for Q1. While revenue increased by 21.6% YoY, revenue per available seat mile is expected to be down 8-10% in Q2 due to capacity increases and flight credit expiration. Southwest expects a profit for Q2 despite revenue headwinds.