Passengers check in at a Southwest Airlines ticket counter during the busy Christmas holiday season at Orlando International Airport on December 28, 2022 in Orlando, Florida.
Paul Hennessy | Anadolu Agency | Good pictures
Southwest Airlines It said Thursday that it expects Holiday meltdown Its bottom line will continue to weigh, but it expects to be even more profitable this year.
The carrier reported a net loss of $220 million in the fourth quarter, as travel chaos pushed up costs and took millions off revenue at what was expected to be the busiest travel season since before the pandemic.
“So far in January 2023, the company has experienced an increase in flight cancellations and a decline in bookings, primarily for January and February 2023 travel, which is believed to be related to operational disruptions in December 2022,” Southwest said in a quarter. Report.
Analysts had expected first-quarter earnings of 19 cents per share, based on estimates compiled by Refinitiv.
The Dallas-based airline said booking trends were positive in March, and it forecast a 10% increase in first-quarter revenue to 20% to 24% from last year. It also estimated that fuel and other costs would be higher than previously estimated.
Southwest’s fourth-quarter loss compares with a profit of $68 million in the same period in 2021. Its record revenue of $6.17 billion was 22% higher than the previous year.
Here’s how Southwest performed For the fourth quarter, compared to Wall Street expectations according to Refinitiv consensus estimates:
- Adjusted loss per share: 38 cents and a loss of 12 cents is expected.
- Total Revenue: $6.17 billion versus an expected $6.16 billion.
Southwest shares fell about 2% in premarket trading after announcing the results.
The airline said earlier this month that the massive write-off brought its previous tax results up to $800 million, which was estimated to be between $725 million and $825 million.
Southwest canceled about 16,700 flights between Dec. 21, even as severe winter weather hit the U.S. on Dec. 31.
While rival airlines often rebounded around Christmas after winter weather, Southwest’s technology remained Unable to process All flight changes and crews must call the carrier for rescheduling. CEO Bob Jordan said earlier this month that the carrier had decided to cancel most of its flights in the coming days to restore operations.
The carrier is processing tens of thousands of refunds and complicated refunds for passengers who booked flights on other airlines to get to their destinations.
There is a transport department Investigation Southwest’s schedules for the holidays are “unrealistic,” a spokeswoman said late Wednesday.
Despite the year-end close, Southwest posted a profit of $539 million in 2022. However, this is down 45% from the previous year.
For the full year 2023, it plans to expand aircraft by 17%, gain another profit and expand margins. An exciting outlook Shared by competitors like American, Delta And United.
Southwest’s executives will host a call with analysts and the media at 12:30 p.m. ET. They face questions about any additional costs and the political fallout of its missteps and technical updates.
