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Southwest Airlines (NYSE:LUV) announced today that it expects to report a net loss in the fourth quarter of 2022. The company canceled over 16,700 flights in ten days from December 21 to December 31.
As a result, LUV now sees a net loss for Q4, driven by a preliminary estimated pre-tax negative impact in the range of $725 million to $825M, the company said in a filing. Southwest said it suffered a revenue loss of $400M – $425M.
Preliminary Q4 analysis shows capacity likely declined 6% relative to the same quarter in 2019 and represents a 4% decrease compared to the previous guidance. The company also expects higher operating expenses from estimated reimbursements.
The company’s CEO Bob Jordan said on Thursday the airline will perform a comprehensive review. He also said that LUV made “great progress” in reimbursing affected customers.
LUV shares are down about 7% in the last two weeks.
