Southwest Airlines forecasts first-quarter loss on cancellations impact

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Jun 17, 2007
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Southwest Airlines Co on Thursday warned of a loss in the current quarter, as passengers shunned the carrier in the immediate aftermath of a tech meltdown that forced it to scrap thousands of flights between Christmas and New Year's Eve. The forecast heaps more pain on the largest U.S. domestic carrier, which is facing regulatory scrutiny over its flight scheduling and handling of over 16,700 cancellations that disrupted holiday plans for tens of thousands of passengers. Southwest, which also reported a loss in the fourth quarter, said it expects a revenue hit of between $300 million and $350 million in the first quarter.
 
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