Southwest Airlines Hires Consultant To Ward Off Future Holiday Anomalies

  • Southwest Airlines Co LUV contacted consulting firm Oliver Wyman to boost a crew scheduling system after its holiday crisis, CEO Bob Jordan said in an interview.
  • The airline had to cancel over 16,700 flights from December 21 - December 31 as it struggled to recover from a severe winter storm versus its rivals, the Wall Street Journal reports
  • Southwest has said the disruption would hit its pretax earnings by $725 million - $825 million.
  • Also Read: Southwest's Holiday Crisis Could Cost It Up To First Nine Months Of FY22 Earnings, Analysts Say
  • Oliver Wyman will help the airline to analyze the anomaly and reset priorities.
  • Southwest's board has also formed its operations review committee to examine the disruption.
  • The airline collaborated with General Electric Co GE on a new version of a crew scheduling system, SkySolver, to tackle such anomalies in the future.
  • Southwest is about 90% finished processing refunds of flights. 
  • The airline also awarded 25,000 frequent flier points to nearly two million people.
  • Southwest held $13.7 billion in cash and equivalents as of September 30.
  • Price Action: LUV shares closed higher by 2.78% at $36.97 on Thursday.
  • Photo Via Company
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