Southwest Airlines promises to reimburse customers for costs caused by cancelations
Southwest Airlines has promised to reimburse customers "for meals, hotel, and alternate transportation" following its disastrous cancelation spree. The airline canceled thousands of flights because of inclement weather across the country and its operational structure, which left it unable to bounce back from the initial scheduling issues.
Starting on Christmas day, the airline canceled thousands of flights leaving many passengers stranded and scrambling for accommodations and alternate travel plans, The New York Times reports. "This was just an unprecedented storm for everybody -- for all airlines," said Southwest CEO Bob Jordan "The storm had an impact, but we had impacts beyond the storm that obviously impacted Southwest very differently."
"There'll certainly be an impact to the fourth quarter," Southwest's Chief Commercial Officer Ryan Green said on Thursday "We're ... working through all the financial elements of this." Experts posit that the reimbursements could cost the company 9 percent of its fourth-quarter earnings, despite projecting an increase in earnings for the holiday season just two months ago, per Reuters.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In response to the disruption, Transportation Secretary Pete Buttigieg (D) wrote to the CEO calling the cancelations "unacceptable." Several senators have also called for investigations against Southwest, with Sen. Bernie Sanders (I-Vt.) writing that the government "must hold Southwest's CEO accountable for his greed and incompetence."
The airline is expected to resume normal operations on Friday.
The company apologized in a statement saying, "We know even our deepest apologies — to our customers, to our employees, and to all affected through this disruption — only go so far."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Devika Rao has worked as a staff writer at The Week since 2022, covering science, the environment, climate and business. She previously worked as a policy associate for a nonprofit organization advocating for environmental action from a business perspective.
-
Mary Poppins tour: 'humdinger' of a show kicks off at Bristol Hippodrome
The Week Recommends Stefanie Jones and Jack Chambers are 'true triple threats' as Mary and Bert in 'timeless' production
By Irenie Forshaw, The Week UK Published
-
Jaguar's stalled rebrand
In the spotlight Critics and car lovers are baffled by the luxury car company's 'complete reset'
By Abby Wilson Published
-
What the chancellor's pension megafund plans mean for your money
Rachel Reeves wants pension schemes to merge and back UK infrastructure – but is it putting your money at risk?
By Marc Shoffman, The Week UK Published
-
Quincy Jones, music icon, is dead at 91
Speed Read The legendary producer is perhaps best known as the architect behind Michael Jackson's 'Thriller'
By Peter Weber, The Week US Published
-
OJ Simpson, star athlete tried for murder, dead at 76
Speed Read The former football hero and murder suspect lost his battle with cancer
By Rafi Schwartz, The Week US Published
-
Momofuku's 'Chili Crunch' trademark uproar
Speed Read The company's attempt to own the sole rights has prompted backlash
By Rafi Schwartz, The Week US Published
-
Kevin Hart awarded Mark Twain Prize
Speed Read He is the 25th recipient of the prestigious comedy prize
By Peter Weber, The Week US Published
-
Is Downton Abbey set to return for a final film?
Speed Read Imelda Staunton reveals that a third movie may be in the pipeline
By Adrienne Wyper, The Week UK Published
-
'Oppenheimer' sweeps Oscars with 7 wins
speed read The film won best picture, best director (Christopher Nolan) and best actor (Cillian Murphy)
By Peter Weber, The Week US Published
-
'Rust' armorer convicted of manslaughter
speed read The film's cinematographer Halyna Hutchins was shot and killed by actor Alec Baldwin during rehearsal
By Peter Weber, The Week US Published
-
The Beatles are getting 4 intersecting biopics
Speed Read Director Sam Mendes is making four separate movies, each told from the perspective of one band member
By Peter Weber, The Week US Published