Transportation Secretary Pete Buttigieg vowed to hold Southwest accountable if it didn't provide customers with refunds and reimbursements, though such fines associated with a failure to pay back customers can take months if not years. That includes both lost revenue from refunds and the reimbursements to affected passengers, which could include expenses like hotels and rental cars.ĭidora cut his fourth-quarter adjusted earnings forecast for Southwest to 37 cents a share from 85 cents.Ī Southwest executive last week said the cancellations will "certainly" hit its fourth-quarter results but that it will take weeks to work through customers' reimbursement requests. The chaos could cost Southwest between $600 million and $700 million, according to estimates from Bank of America airline stock analyst Andrew Didora on Tuesday. The carrier had canceled about two-thirds of its flights for much of the last week in an attempt to get crews and planes where they needed to go, before operating close to normally on Friday. Hundreds of thousands of passengers were impacted, and Southwest is still working through a backlog of misplaced luggage. But Southwest crews struggled to get reassigned automatically after all of the changes and were forced to wait on hold for hours with crew scheduling services. Over Easter weekend, for example, it currently costs more than 25,000 Rapid Rewards points to travel roundtrip between Baltimore and Los Angeles, but it would more than cover a ticket a week later.īad weather kicked off the issues last month, impacting flights throughout the U.S. The miles required to redeem for a ticket vary depending on demand and capacity. A day later, the airline told CNBC that travelers who rebooked with Southwest are also eligible for the 25,000 miles. 2, and who didn't travel or rebook, 25,000 Rapid Rewards points, a roughly $300 value, according to the airline. On Tuesday, Southwest told CNBC that it began offering travelers whose flights were canceled or significantly delayed between Dec. "We've cut the number of bags in half since Thursday and we're on track to get the majority if not all bags shipped to our Customers later this week," Jordan told staff on Monday. The carrier is working with FedEx to help get customers their luggage. Jordan said employees from other departments have volunteered to help customers and process refunds. "We have plans to invest in tools and technology and processes, but there will be immediate work to understand what lessons are learned here and how we keep this from ever happening again, because it cannot happen again," Southwest CEO Bob Jordan, who took the helm in February, told staff Friday. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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