Southwest outage, canceled flights cost an estimated $54M

FILE - In this July 21, 2016, file photo, people wait in the Southwest Airlines check-in line at Sky Harbor International Airport in Phoenix, following problems that caused hundreds of flights to be canceled or delayed. The cancellation of more than 2,000 Southwest Airlines flights due to the computer outage will cost the carrier an estimated $54 million. Dallas-based Southwest blamed a router failure for the July 20 outage and subsequent days of delays. (Tom Tingle/The Arizona Republic via AP, File)

DALLAS (AP) — The cancellation of more than 2,000 Southwest Airlines flights due to a computer outage last month will cost the carrier an estimated $54 million.

The Dallas Morning News (http://bit.ly/2aV2tcm ) reported the lost revenue and increased cost estimates based on a Southwest investor advisory released Wednesday.

Dallas-based Southwest blamed a router failure for the July 20 outage and subsequent days of delays.

While Southwest didn’t provide a specific cost of the outage, the company said it would lead to a 0.5 percentage point drop in unit revenues during the third quarter and that it expects its cost per seat mile to rise by up to 2 percent. The newspaper based its estimate on those projections.

An unrelated computer outage this week has resulted in the cancellation of more than 2,100 Delta Air Lines flights.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s