![]() Airline Business special: CEOs to watch in 2021.FlightGlobal Guide to Business Aviation Training and Safety 2021.EDGE: A new global force in aerospace and defence.Shell Aviation: What will it take to Decarbonise Aviation?.What does the future of aviation look like in 2022?.Guide to Business Aviation Training and Safety 2022.What will it take to Decarbonise Aviation?.Guide to Business Aviation Training and Safety 2023.Airline Business Covid-19 recovery tracker.We continue to expect our second-quarter capacity to be up 14% year-over-year. “Therefore, the reduction in our deliveries should not impact our summer flight schedule. “We have a surplus of underutilised aircraft in our fleet due to pilot hiring constraints,” Jordan says. ”And we are currently re-evaluating our hiring relative to our most recent expectation to hire more than 7,000 net new employees this year.”īut Southwest’s summer schedule will be mostly unaffected by the delayed aircraft. ”The outcome is a reduction to our 2023 capacity and outlook,” says chief executive Bob Jordan. The delayed deliveries of Max 8 aircraft have caused a ”one-point decrease in year-over-year planned 2023 capacity” in Southwest’s projections, and the carrier has also “moderated” its hiring plans. It is now expecting to receive 70 rather than 90 jets this year. ![]() In a setback to the airline’s growth, Southwest says it now expects 20 fewer new Boeing 737 deliveries in 2023 than previously estimated due to ongoing manufacturing and supply-chain issues. ”Based on current revenue trends and our cost outlook – which includes market wage rate accruals for all open labour contracts – we expect solid profits in the second quarter of 2023 and continue to expect solid profits and year-over-year growth in both margins and return on invested capital for full year 2023,” Southwest says. The carrier maintains a strong outlook for the months ahead, as it expects its pre-Covid-19 network to be fully restored by the end of 2023. Southwest says it has completed a review of its December 2022 performance and is on track to implement an action plan to avoid similar operational disruptions by winter 2023. ”While our technology teams worked quickly to resolve the issue that morning, out of abundance of caution we temporarily ground-stopped the airline,” he adds. “We experienced a double firewall failure that resulted in an unexpected loss of connection to some operational data,” says chief operating officer Andrew Watterson. ![]() CUTTING CAPACITY EXPECTATIONSĮarlier this month, another technology issue temporarily grounded Southwest’s flights nationwide, with operations resuming within about an hour. ”The majority of this impact was driven by a negative revenue impact of approximately $325 million as a result of cancellations of holiday return travel and a deceleration in bookings for January and February 2023 travel,” the airline says. Some 16,700 flights were cancelled and hundreds of thousands of air travellers were stranded as the company’s crew-scheduling software crashed amid fierce winter weather. The airline’s costs reached nearly $6 billion, however, including $380 million related to Southwest’s operational meltdown during the peak of December 2022 holiday travel.
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