Southwest Airlines Co. (LUV), which went through massive flight cancellations amid severe winter storm and scheduling issues in late December, said Friday that it expects to report a net loss in fourth quarter 2022, as a result of the operational disruptions.
The fourth quarter result is hurt by a preliminary estimated fourth quarter 2022 pre-tax negative impact in the range of $725 million to $825 million. A significant portion of this impact is from an estimated revenue loss in the range of $400 million to $425 million. The remaining impact relates to an estimated net increase in operating expenses, primarily due to estimated travel expense reimbursements to Customers.
The Airline said that it canceled more than 16,700 flights from December 21, 2022 through December 31, 2022.
The company's preliminary estimate of fourth quarter 2022 available seat miles (capacity) is a decline of about 6 percent, as compared with fourth quarter 2019, which is roughly 4 points lower than previous guidance.
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