Global  

Celebrating 10 Years of Trusted News Discovery
One News Page
> > >

Government shutdown hurts Southwest Airlines

Video Credit: Reuters Studio - Duration: 01:01s - Published < > Embed
Government shutdown hurts Southwest Airlines

Government shutdown hurts Southwest Airlines

Southwest Airlines cut its forecast for a key revenue metric, citing weak passenger demand and a $60 million hit to first quarter sales from the partial government shutdown.

Fred Katayama reports.

0
shares
ShareTweetSavePostSend
 

Government shutdown hurts Southwest Airlines

The partial government shutdown took its toll on Southwest Airlines.

The month-long hiatus prevented the carrier from launching its new route to Hawaii and led to widespread delays at airports, taking a $60 million bite out of first quarter sales.

Weak passenger demand also hurt the airline.

Southwest cut its growth estimate for a key revenue metric.

Goldman Sachs added to the pain, downgrading the shares to "sell" from "neutral" and cutting its price target.

Analyst Catherine O'Brien thinks the shutdown would force it to heavily discount its inital Hawaii fares, saying, "We now expect initial flights to have a one to one-and-a-half month selling window, putting more pressure on management to fill planes in a shorter time frame." What's more, the airline has been canceling flights due to a conflict with maintenance staff and weather issues.

Flight-tracking service FlightAware.com says Southwest accounted for about a fourth of all flights canceled across the U.S. on Tuesday.

Southwest shares had staged a strong rally this year, up 24 percent, but gave back some of those gains at the market open on Wednesday.




You Might Like


Recent related videos from verified sources

Southwest Soars Despite 737 Max Issues [Video]Southwest Soars Despite 737 Max Issues

Southwest Airlines beat earnings expectations Thursday despite being impacted by the grounding of the Boeing 737 Max aircraft. The airline has the most exposure to the aircraft of all US carriers...

Credit: Wochit Business     Duration: 00:40Published

Southwest Workers To Demonstrate At Bay Area Airports [Video]Southwest Workers To Demonstrate At Bay Area Airports

Hundreds Southwest Airlines workers at the Bay Area's three major airports will hold demonstrations Monday, over working conditions and outsourcing to non-union contractors. Jackie Ward reports...

Credit: CBS 5 SF KPIX     Duration: 00:55Published

Southwest Airlines, American Airlines Limiting Operations In North Texas Wednesday Evening Due To Weather [Video]Southwest Airlines, American Airlines Limiting Operations In North Texas Wednesday Evening Due To Weather

In light of the possibility of severe storms in North Texas Wednesday, Southwest and American airlines are limiting their operations in the evening due to the chance of bad weather.

Credit: CBS 11 Dallas     Duration: 01:57Published

Baby on Board: Kind Flight Attendant Introduces Infant Passenger to Other Travelers [Video]Baby on Board: Kind Flight Attendant Introduces Infant Passenger to Other Travelers

Savannah Blum and her baby daughter Brittan were traveling with Southwest Airlines from Austin, Texas, to Reno, Nevada, with a stopover in Las Vegas on April 6. While the Southwest Airlines plane was..

Credit: Rumble     Duration: 00:51Published

Southwest Cancels Several Flights Out Of Pittsburgh As It Adjusts For Loss Of Boeing 737 Max 8's [Video]Southwest Cancels Several Flights Out Of Pittsburgh As It Adjusts For Loss Of Boeing 737 Max 8's

The grounding of the Boeing 737 MAX 8 aircraft is prompting some adjustments and service reductions at Pittsburgh International Airport this coming summer; KDKA's Jon Delano reports.

Credit: KDKA CBS 2 Pittsburgh     Duration: 02:22Published

Too Little, Too Late? Airlines Struggle As Boeing 737 MAX Grounding Drags On [Video]Too Little, Too Late? Airlines Struggle As Boeing 737 MAX Grounding Drags On

Operators of the grounded Boeing 737 MAX are facing an unusual problem. Instead of competing to sell tickets and fill seats, Reuters reports airlines are struggling with scarce planes at a time of..

Credit: Wochit Business     Duration: 00:34Published

American Airlines Cancels Boeing 737 Max Flight Until August [Video]American Airlines Cancels Boeing 737 Max Flight Until August

Cnn reports American Airlines is extending flight cancellations into mid-August because of the Boeing 737 Max grounding. American Airlines, the world's largest airline, decided to extend cancellations..

Credit: Wochit Business     Duration: 00:43Published

FAA Meets With U.S. Airlines, Pilot Unions On Boeing 737 MAX [Video]FAA Meets With U.S. Airlines, Pilot Unions On Boeing 737 MAX

According to Reuters, the Federal Aviation Administration met on Friday with representatives from the three major U.S. airlines that own a now grounded Boeing 737 MAX jets, to discuss two fatal crashes..

Credit: Wochit News     Duration: 00:37Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.