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Tag: Airlines

  • Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

    Airline stocks fell premarket after FAA says all U.S. flights grounded over computer outage

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    Airlines stocks fell across the board in premarket trade Wednesday, after the Federal Aviation Administration said a computer outage had led to all U.S. fights being grounded. The agency said on its website that its “Notice to Air Missions” system has been activated “to address the equipment outage issues for the U.S. NOTAM system.” A NOTAM is a notice for workers engaged in flight operations. There was no indication of when service might be restored. Southwest Airlines Co.
    LUV,
    +1.68%

    led the decliners, falling 2.5%. American Airlines Group Inc.
    AAL,
    +3.97%

    was down 1.6%, United Airlines Holdings Inc.
    UAL,
    +5.54%

    was down 0.8%, JetBlue Airways Corp.
    JBLU,
    +4.92%

    was down 0.7% and Delta Air Lines Inc.
    DAL,
    +3.59%

    was down 0.7%. The U.S. Global Jets ETF
    JETS,
    +2.40%

    was down 0.7% and has fallen 14% in the last 12 months, while the S&P 500
    SPX,
    +0.70%

    has fallen 17%.

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  • Delta Air Lines is rolling out free Wi-Fi | CNN Business

    Delta Air Lines is rolling out free Wi-Fi | CNN Business

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    New York
    CNN
     — 

    Delta Air Lines is rolling out free Wi-Fi to most of its planes beginning February 1.

    “It’s going to be free, it’s going to be fast and its going to be available for everyone,” Delta CEO Ed Bastian said Thursday at Consumer Electronics Show in Las Vegas. He added that the airline invested more than $1 billion in Wi-Fi technology over the past few years.

    Passengers will need to be a member of its free SkyMiles loyalty program to access the on-board internet. Customers who aren’t members will have to pay a flat fee of $10.

    More than 500 of Delta’s domestic narrow-body planes serving the airline’s “most popular routes” will be ready for free Wi-Fi at launch, the company said. Wide-body international and smaller regional jets will be coming online by the end of 2024.

    Customers will know if their flight has free Wi-Fi by a decal noting it near the boarding door. They also can connect multiple devices at one time.

    The announcement, made Thursday at the Consumer Electronics Show, is several years in the making. Bastian said in 2018 that offering free Wi-Fi across its fleet was a priority, but needed time to improve the technology so passengers wouldn’t have to struggle with sluggish speeds.

    Delta currently charges nearly $50 per month for Wi-Fi on its flights within North America and $70 on international flights. It has been testing free Wi-Fi over the past several years, and made messaging free in 2017.

    In-flight internet on any airline has been long plagued by complaints for its inconsistent speeds. However, efforts by a host of satellite providers and airlines have helped the technology evolve significantly in the past decade — though it still has some catching up to do to compare to home and office networks.

    Delta is the first of the “Big Three” airlines to offer free Wi-Fi: United Airlines and American Airlines

    (AAL)
    both charge varying rates for access. JetBlue

    (JBLU)
    has offered free Wi-Fi since 2017.

    The airline is beting that adding free W-Fi could make passengers more loyal to Delta and further grow its loyalty program, which has about 100 million members. In October 2022, Delta partnered with Starbucks

    (SBUX)
    and began awarding 1 mile for every $1 spent at the coffee chain.

    Bastian predicted that partnership would add 1 million SkyMiles members within a year. However, Delta ended up adding 1 million new members within two weeks of its launch.

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  • Southwest Airlines meltdown highlights insular management team: ‘A founder-based culture can only take it so far’

    Southwest Airlines meltdown highlights insular management team: ‘A founder-based culture can only take it so far’

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    In the aftermath of a meltdown that led to 16,700 flight cancellations and may cost the airline more than $800 million, blame has fallen on an outmoded crew scheduling system and an unusual point-to-point route network. Southwest was overwhelmed and unable to adapt as a severe storm swept the US.

    But behind those specific issues is an insular management team that critics say lacks the imagination and technology expertise to help avoid such crises. While the bootstrap culture instilled by co-founder Herb Kelleher turned Southwest into one of the nation’s largest carriers, the size of the company now demands new ways of thinking and investment in innovation.

    “It makes you wonder if there isn’t sort of a correlation or cause and effect here, where you’ve got a fairly entrenched, stagnant board, a grow-your-own leadership team since it was a very small, scrappy airline,” said Keith Meyer, global leader of the CEO and board practice at executive search firm Allegis Partners. “A founder-based culture can only take it so far.”

    Southwest is full of lifers. Bob Jordan, who took over as chief executive officer in February, has been with the airline 34 years. The chief financial officer and communications chief have each worked there 30 years, while the chief commercial and chief legal officers have been around at least 20. The closest to a newbie among Southwest’s top management might be Chief Operating Officer Andrew Watterson, who joined a decade ago from Hawaiian Airlines.

    Jordan doesn’t see it as a problem.

    “We’ve always been proud of the fact we’ve developed leaders here and that we have folks with so much tenure,” he said in an interview. “They have a very deep airline knowledge, functional knowledge and very deep relationship that serves you well in normal times and when you get into an incident like this.”

    Southwest isn’t alone in recruiting from within. American Airlines Group Inc.’s top leadership had been together since the mid-1990s, first at America West Airlines, then US Airways before a merger with American. The group first began to fracture when Scott Kirby moved to United Airlines Holdings Inc. in 2016 and later became CEO there.

    “The aviation industry more broadly has been a bit of a laggard experimenting with executives from outside, let alone their boards,” said Jason Hanold, CEO of executive search firm Hanold Associates.

    The Southwest mindset

    But Southwest is in a unique position, with the challenges of a major carrier and the mindset of a small one.

    The airline, which began flying between a handful of cities within Texas in 1971, has grown into a behemoth that has carried more domestic passengers than any other airline in recent years. That expansion has added complexity to its keep-it-simple business model, and resulting cost pressures mean it often can’t offer the cheapest fares.

    The airline’s focus on stretching every dollar has also made it more conservative than other carriers in a highly regulated, safety-focused industry that rewards consistency, said Samuel Engel, senior vice president for innovation at ICF, and former head of the consultant’s aviation group. It leans more on insiders because of “the continued belief that Southwest is different.”

    Southwest’s 13-member board has an average tenure of nearly 12 years, compared with about six and a half at Delta Air Lines Inc. and American and five and a half at United, which agreed to a board revamp in 2016 at the behest of activist investors. None of Southwest’s directors has a background in tech.

    The carrier has a long-standing reputation of being slow to adopt new technology, and spent years implementing a new reservation system and updating its maintenance operations. It’s now spending $2 billion to improve a balky Wi-Fi system, add power ports at seats and install larger overhead bins. 

    “Southwest is the largest domestic airline in the US and it should start behaving that way,” Helane Becker, an analyst with Cowen Inc., said in a research note. “There are probably a lot of smart technology people who are getting laid off from tech companies that could help it out.”

    Southwest has acknowledged putting updates to its crew scheduling system behind other improvements, despite long-standing complaints from pilots and flight attendants. Watterson called the system its “Achilles’ heel” in the December breakdown.

    The airline has said it’s looking at every aspect of operations to find what produced the meltdown, and expects to “swiftly” reach conclusions. It hasn’t said how many passengers were affected, but the company is reimbursing travelers for canceled flights and hotels, meals and other related expenses.

    Its shares have fallen slightly since the travel fiasco, even as the broader market has gained. Southwest tumbled 21% in 2022, the second-worst performance among the five biggest US carriers. The reputational damage may lead to more volatility, and its shares will underperform the S&P 500 Index by 5% over the next two months, according to Nir Kossovsky, CEO of reputation risk insurer Steel City Re.

    Jordan said he’s committed to getting the company back on track, regardless of what it takes.

    “We have a 51-year history of doing really well, operating really well,” he said. “This one event, which is significant, won’t define us.”

    Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of today’s executives. Subscribe here.

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    Mary Schlangenstein, Bloomberg

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  • What the return of Chinese tourists means for the global economy | CNN Business

    What the return of Chinese tourists means for the global economy | CNN Business

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    Hong Kong
    CNN
     — 

    In the years before Covid, China was the world’s most important source of international travelers. Its 155 million tourists spent more than a quarter of a trillion dollars beyond its borders in 2019.

    That largesse fell precipitously over the past three years as the country essentially closed its borders. But, as China prepares to reopen on Sunday, millions of tourists are poised to return to the world stage, raising hopes of a rebound for the global hospitality industry.

    Although international travel may not return immediately to pre-pandemic levels, companies, industries and countries that rely on Chinese tourists will get a boost in 2023, according to analysts.

    China averaged about 12 million outbound air passengers per month in 2019, but those numbers fell 95% during the Covid years, according to Steve Saxon, a partner in McKinsey’s Shenzhen office. He predicts that figure will recover to about 6 million per month by the summer, driven by the pent-up wanderlust of young, wealthy Chinese like Emmy Lu, who works for an advertising company in Beijing.

    “I’m so happy [about the reopening]! ” Lu told CNN. “Because of the pandemic, I could only wander around the country for the past years. It was difficult.”

    “It’s just that I’ve been stuck inside the country for a little too long. I’m really looking forward to the lifting of the restrictions, so that I can go somewhere for fun! ” the 30-year-old said, adding that she wanted to visit Japan and Europe the most.

    As China announced last month it would no longer subject inbound travelers to quarantine starting January 8, including residents returning from trips abroad, searches for international flights and accommodations immediately hit a three-year high on Trip.com

    (TCOM)
    .

    Bookings for overseas travel during the upcoming Lunar New Year holiday, which falls between January 21 and January 27 this year, have soared by 540% from a year ago, according to data from the Chinese travel site. Average spending per booking jumped 32%.

    The top destinations are in the Asia Pacific region, including Australia, Thailand, Japan and Hong Kong. The United States and the United Kingdom also ranked among the top 10.

    “The rapid buildup in … [bank] deposits over the past year suggests that households in China have accumulated significant cash holdings,” said Alex Loo, a macro strategist for TD Securities, adding that frequent lockdowns have likely led to restraints on household spending.

    There could be “revenge spending” by Chinese consumers, mirroring what happened in many developed markets when they reopened early last year, he said.

    That’s good news for many economies battered by the pandemic.

    “We estimate that Hong Kong, Thailand, Vietnam and Singapore would benefit the most if China’s travel service imports were to return to 2019 levels,” said Goldman Sachs analysts。

    Hong Kong — the world’s most visited city with just under 56 million arrivals in 2019, most of them from mainland China — could see an estimated 7.6% boost to its GDP as exports and tourism income increase, they said. Thailand’s GDP may be boosted by 2.9%, while Singapore would get a lift of 1.2%.

    Elsewhere in the world, Cambodia, Mauritius, Malaysia, Taiwan, Myanmar, Sri Lanka, South Korea and Philippines are also likely to benefit from the return of Chinese tourists, according to research by Capital Economics.

    Hong Kong has suffered particularly acutely from the closure of its border with mainland China. The city’s pillar industries of tourism and real estate have been hit hard. The financial hub expects GDP to have contracted by 3.2% in 2022.

    The city government announced Thursday that up to 60,000 people would be allowed to cross the border daily each way, starting Sunday.

    Several other Southeast Asian countries reliant on tourism have kept entry rules relatively relaxed for Chinese tourists, despite the record Covid-19 outbreak that has swept through China in recent weeks. They include Thailand, Indonesia, Singapore and the Philippines.

    “This is one of the opportunities that we can accelerate economic recovery,” Thailand’s health minister said this week.

    New Zealand has also waived testing requirements for Chinese visitors, who were the second largest source of tourist revenue for the country before the pandemic.

    But other governments are more cautious. So far, nearly a dozen countries, including the United States, Germany, France, Canada, Japan, Australia and South Korea, have mandated testing.

    The European Union on Wednesday “strongly encouraged” its members states to require a negative Covid test for visitors from China before arrival.

    There is clearly “conflict” between the tourism authorities and the political and health officials in some countries, said Saxon, who leads McKinsey’s travel practice in Asia.

    Airlines and airports have already blasted the EU’s recommendations for testing requirements.

    The International Air Transport Association, the airline industry’s global lobby group, together with airports represented by ACI Europe as well as Airlines for Europe, issued a joint statement on Thursday, calling the EU move “regrettable” and “a knee-jerk reaction.”

    But they welcomed the additional recommendation to test wastewater as a way of identifying new variants of the disease, saying it should be an alternative to testing passengers.

    Besides restrictions, it will take time for international travel to fully rebound because many Chinese must renew their passports and apply for visas again, according to analysts.

    Lu from Beijing said she was still considering her travel plans, taking into consideration the various testing requirements and the high price of flying.

    “The restrictions are normal, because everyone wants to protect people in their own country,” she said. “I’ll wait and see if some policies will be eased.”

    Liu Chaonan, a 24-year-old in Shenzhen, said she had initially wanted to go to the Philippines to celebrate the Chinese New Year, but didn’t have time to apply for the visa. So she switched to Thailand, which offers quick and easy electronic permits.

    “Time is short and I need to leave in about 10 days. People may choose some visa-friendly places and countries to travel to,” she said, adding that she plans to learn scuba diving and wants to buy cosmetics. Her total budget for the trip could exceed 10,000 yuan ($1,460).

    Saxon said he expected China’s outbound international travel to fully recover by the year end.

    “Generally, individuals are pragmatic and countries will welcome Chinese tourists due to their spending power,” he said, adding that countries may remove restrictions quickly when the Covid situation improves in China.

    “It will take time for international tourism to get going, but it will come rushing back, when it happens.”

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  • Southwest meltdown may cost the airline up to $825 million | CNN Business

    Southwest meltdown may cost the airline up to $825 million | CNN Business

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    New York
    CNN
     — 

    The cost of the service meltdown at Southwest Airlines over the year-end holidays cost the airline nearly $1 billion and will cause the company to report a loss rather than a profit in the fourth quarter, the airline said in a filing on Friday.

    The airline, the nation’s largest domestic carrier, said the cost of canceling more than 16,700 flights between December 21 and 29 will be somewhere between $725 million and $825 miilion. A bit more than half the cost – between $400 million and $425 million – will come from lost ticket revenue that will be refunded to customers.

    Other costs include compensation for customers, both to pay for any out-of-pocket expenses and the cost of booking flights on other airlines, as well as providing 25,000 points to the frequent flier accounts of affected customers. There are also increased operating costs, such as additional compensation for employees, such as overtime pay.

    These costs were partly offset by unspecified savings from reduced fuel consumption and reduced profit sharing payments to staff.

    Shares of Southwest

    (LUV)
    , which had already lost 8% of their value since December 21, lost another 2% in early trading Friday.

    The costs did not include any possible fines that could be imposed by the Department of Transportation. DOT has said it is investigating the service problems at Southwest and members of Congress are calling on it to take firm action against the airline.

    The costs also did not include any estimate for lost bookings in the future from customers who decide they no longer want to fly on Southwest, or the cost of upgrading its computer systems, specifically its crew scheduling system, which has been blamed for much of the service meltdown. While bad weather started the service problems, Southwest suffered far worse service problems, according to its employee unions, because the antiquated scheduling system left it without the crew members it needed to staff flights.

    The company did not give an estimate for how large the fourth quarter loss would be. The company earned $316 million in the third quarter, excluding special items, and $950 million on that basis over the first nine months of the year. It had been poised to return to profitability after $4.8 billion in combined losses 2020 and 2021 caused by the pandemic, ending a streak of 47 straight year of annual profits.

    This is not the first time the airline has suffered a costly service meltdown. It estimated similar problems during the Columbus Day weekend in 2021 cost it $75 million. But there were far fewer passengers flying then and far fewer flights canceled.

    – CNN’s Greg Wallace contributed to this report

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  • This airline has new designer uniforms — including jumpsuits | CNN

    This airline has new designer uniforms — including jumpsuits | CNN

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    Editor’s Note: Sign up for Unlocking the World, CNN Travel’s weekly newsletter. Get news about destinations opening, inspiration for future adventures, plus the latest in aviation, food and drink, where to stay and other travel developments.



    CNN
     — 

    Some people say flying just isn’t glamorous enough. And as airlines battle to cast themselves as the sleekest team in the skies, another brand has heard that complaint.

    British Airways has unveiled a new uniform – its first in nearly two decades. The airline’s current threads, designed by Julien MacDonald, will be replaced by a line created by Ozwald Boateng, the Savile Row designer and tailor.

    Engineers and ground operations staff will get their new uniforms in Spring 2023, while onboard crew and check-in agents will receive theirs in the summer.

    And to keep things relatively green – at least, for an airline – staff will hand in their old uniform for recycling or charity donation when they pick up the new. Around 90% of the material is a fabric mix using recycled polyester.

    The path to new uniforms has been a lengthy one, starting in 2018 and involving over 1,500 staff, who took part in design workshops and garment trials.

    Boateng shadowed staff to get an idea of their movements and requirements before designing the line, while for the past six months, crew have worn the uniform in “secret trials” on cargo flights, while maintenance staff have worn them out of sight at the UK’s Manchester and Cotswold Airports, according to a press release.

    Those trials have actually produced changes, too – engineers requested (and got) easy-access tool pockets, while ground handlers asked for gloves with fabric that would enable them to use their devices while wearing them. Crew had their apron pockets widened after reporting in trials that they needed more space during meal service.

    As for the uniforms themselves, the airline says the Boateng has created “bespoke fabrics and designs.” An “airwave” pattern, inspired by air flowing across an airplane wing, features on jackets, t-shirts, buttons and ties, while a jacquard fabric used for tailored items incorporates the “speedmarque” – BA’s logo-like ‘swish’ painted on planes.

    The collection has a tailored three-piece suit for men, who can choose between regular or slim fit pants. Women can choose between pants, skirt, dress or – a first for an airline – a jumpsuit. There is also a tunic and hijab option. Of course, the uniforms aren’t quite up to Savile Row specifications – they are “high-quality, resilient fabrics that are easy to care for.” The outdoor uniforms have even been put into freezers and into the shower to test their fit for extreme weather.

    Boateng said in a statement: “Designing this uniform was a vast and painstaking undertaking and it went far beyond clothes. It was about creating an energetic shift internally.

    Over 1,500 members of staff helped trial the uniforms.

    “One of my main objectives was to create something that spoke to, and for, the airline’s colleagues. Something that inspired and empowered them, encouraged them to conduct their roles with pride and most importantly to ensure that they felt seen and heard. Although the airline has a strong heritage, it was imperative to support in creating a fresh narrative of change and transcendence, while remaining timeliness.”

    Let’s hope that works for the beleaguered airline. BA has yet to fully recover from the pandemic, during which it laid of swathes of staff. 2022 saw multiple IT meltdowns, baggage delays and canceled flights for the airline, which was at the heart of the UK’s travel chaos in summer 2022.

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  • Southwest Starts On Reputation Repair After Cancellations

    Southwest Starts On Reputation Repair After Cancellations

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    DALLAS (AP) — With its flights running on a roughly normal schedule, Southwest Airlines is now turning its attention to repairing its damaged reputation after it canceled 15,000 flights around Christmas and left holiday travelers stranded.

    CEO Robert Jordan said Thursday that Southwest has processed about 75% of the refund requests it has received. The airline has also returned most lost bags to their owners, and hired an outside firm to sift through requests for reimbursement of things like hotels and meals that stranded passengers paid out of their own pockets, he said.

    The massive disruptions began Dec. 22 with a winter storm, and snowballed when Southwest’s ancient crew-scheduling technology was overwhelmed, leaving crews and planes out of position to operate flights. It took the airline eight days to recover.

    Jordan said in a brief interview that Southwest is still studying what went wrong, and he doesn’t want to make changes in technology until that review is done. He expressed optimism but offered few specifics about avoiding a repeat meltdown.

    Southwest is giving 25,000 frequent-flyer points to customers whose flights were canceled or significantly delayed between Dec. 24 and Jan. 2, and seems to be making progress on refunds, but executives concede it will take many weeks to process the reimbursement requests.

    Danielle Zanin is still waiting to hear whether Southwest will cover the $1,995.36 that she spent during a four-day odyssey getting her family of four home to Illinois after their flight was canceled in Albuquerque, New Mexico. Even if she eventually gets the money, it may not be enough for her to try Southwest again.

    “It would take a lot for the airline to prove to me that they can fix whatever technology they use to get flight crews and planes where they need to go. It’s just not worth the hassle that I went through,” Zanin said. She said she plans to go back to flying on American Airlines even if it costs more.

    Southwest hopes that refunds, reimbursements and loyalty points will persuade people not to switch to other airlines, known in the industry as “booking away.”

    “Book-away typically has a short half-life, perhaps as little as a month, given it appears from many accounts that Southwest is being very generous reimbursing not only flight but other out-of-pocket costs” and is serious about fixing the technological shortcomings that made the crisis worse, said Robert Mann, an airline consultant in New York.

    Retaining loyal customers is crucial if Southwest is to limit the financial damage of the meltdown. The company has yet to say how much money it lost because of the canceled flights — Jordan promised more information before Southwest reports quarterly results on Jan. 26.

    Raymond James airline analyst Savanthi Syth estimated that the storm will cost Southwest about $585 million in lost revenue, plus higher expenses. Mann figures it’s between $500 million and $600 million in cash, vouchers and frequent-flyer points.

    Airlines — including Southwest as recently as October 2021 — have recovered quickly from previous meltdowns, whether they were caused by bad weather, crew shortages, IT outages or other factors. Passenger numbers, if they declined at all, recovered quickly.

    “The reputational damage is only as relevant as what consumers can do about it,” said Michael Mazzeo, who teaches strategy at Northwestern University’s business school and has examined airline competition. “In a lot of markets, there is little or no competition to Southwest. When there is no outlet for consumers, the damage is more limited.”

    Southwest, American, United and Delta control about 80% of the domestic air-travel market. Southwest — it started 50 years ago as a low-cost competitor to big airlines but has gradually become much more like them — has a particularly outsized presence in some big states including California, Arizona and Texas.

    Southwest remained relatively quiet for several days even after it became clear that it was struggling while other airlines recovered from the winter storm — and after it came under repeated criticism from consumers, media reports and Transportation Secretary Pete Buttigieg.

    As canceled flights piled up day after day, Southwest gave few updates and rejected requests for interviews with key executives. It posted a video apology by Jordan Dec. 27, followed a day later by a video with another executive. Company executives did not speak generally to the media until Dec. 29, when they announced that Southwest would resume normal operations the following day.

    “The company was slow to come forward in terms of corporate PR communications until the government went after them, the (Transportation) secretary called the CEO directly and demanded they move fast to take care of those people,” said Larry Yu, a George Washington University professor who studies crisis management in the tourism industry. “Short-term, it’s big damage.”

    But Yu also noted that Southwest has decades of reputation for relatively low fares and good service to fall back on. He praised the airline for promising refunds, reimbursements and frequent-flyer points.

    “They have to do something to win back those customers,” Yu said. Now, he added, Southwest must make good on vows to improve its technology, “because you don’t want to equate low-cost with low-tech.”

    Jordan said Southwest has good technology, but he said the airline will re-examine IT priorities once it better understands how the December failure unfolded.

    The debacle has also focused attention on Southwest among lawmakers in Congress.

    Sen. Richard Blumenthal, D-Conn., said Wednesday that he will re-introduce a “passenger bill of rights,” which failed to become law in the last Congress.

    “The Southwest debacle creates a moment when the forces in favor of this kind of consumer-protection measure could prevail,” he said in an interview.

    The Senate Commerce Committee said this week it will hold hearings on the Southwest meltdown. Blumenthal said witnesses should include executives from Southwest and other airlines.

    “This problem (of flight disruptions) is hardly limited to Southwest, it’s hardly the first meltdown in airline travel, and it’s hardly unforeseeable,” Blumenthal said. He said it was baffling why Southwest had not improved its crew-scheduling technology after it had failed during previous disruptions in the summer and fall of 2021.

    Buttigieg has said repeatedly that his department is watching Southwest closely and will hold it accountable to treat customers fairly.

    Consumer groups have given mixed grades to the Transportation Department’s oversight of airlines. They viewed the Trump administration as a low point, with few enforcement actions taken against airlines even in the face of record consumer complaints. The Biden administration fined Frontier Airlines and several foreign carriers last year for not quickly paying refunds to travelers whose flights were canceled during the early months of the pandemic, but advocates were disappointed that none of the four largest U.S. airlines were fined.

    The Transportation Department has the burden of enforcing consumer-protection laws aimed at protecting airline travelers. Several consumer groups are urging Congress to let state officials and private parties sue airlines to enforce those laws — an effort that has been unsuccessful so far.

    “The airlines are going to lobby hard to have as little regulation as possible, but with each passing meltdown it becomes more apparent that real change is needed,” said John Breyault, vice president of public policy at the National Consumers League.

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  • As EU works to coordinate response to China’s COVID wave, Beijing and airlines are unhappy

    As EU works to coordinate response to China’s COVID wave, Beijing and airlines are unhappy

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    European Union officials were working Wednesday to coordinate a response to China’s current surge of COVID cases and were likely to agree on travel restrictions that may upset both Beijing and airlines.

    The Chinese government has already slammed the countries that have imposed a COVID test requirement on passengers from China and has threatened countermeasures if more are introduced, the Associated Press reported.  

    EU Commission spokesman Tim McPhie said Wednesday that most EU nations are in favor of testing prior to departure and are seeking an official position later in the day.

    There are concerns that China’s wave may allow for new, potentially more evasive and risky variants of the coronavirus to emerge, although so far, data are showing the variants circulating in China are already in Europe.

    See also: Isolated and humiliated, Russia is biggest geopolitical threat of 2023: Eurasia Group

    On Wednesday the International Air Transport Association, which represents some 300 airlines worldwide, lent its powerful voice to the protests.

    “It is extremely disappointing to see this knee-jerk reinstatement of measures that have proven ineffective over the last three years,” said IATA Director General Willie Walsh.

    “Research undertaken around the arrival of the omicron variant concluded that putting barriers in the way of travel made no difference to the peak spread of infections. At most, restrictions delayed that peak by a few days,” Walsh said.

    EU nations are also expected to agree to test wastewater from planes flying in from China to determine whether it contains variants that are not yet prevalent in Europe.

    As China reopens after nearly three years of isolation, the U.S. and several other countries will require travelers to show a negative COVID test. The Wall Street Journal explains why some pandemic restrictions are back and what they mean for people traveling to and from China. Photo: Nicola Marfisi/Avalon via ZUMA Press

    In the U.S., the seven-day average for new COVID cases has continued to fall and stood at 60,417 on Tuesday, according to a New York Times tracker. That’s down 10% from two weeks ago and below the recent peak of 70,508 on Christmas Eve.

    The daily average for hospitalizations was up 8% to 44,504. The average for deaths was 310, down 24% from two weeks ago.

    The New York Times tracker notes there is reason to believe current case and death counts could be artificially low, as the people who track those numbers take time off around the Christmas and New Year’s holidays. Hospitalization data are not typically affected by holiday reporting breaks.

    The number of patients with COVID in intensive-care units rose 11% in two weeks, to 5,350. Meanwhile, the test-positivity rate climbed to 16% and has increased by 25% over the past two weeks. Higher test-positivity rates suggest many new COVID cases are not being counted, as results of at-home testing may not be reported to case trackers. 

    Overall, cases are currently rising in 17 states, led by Mississippi, where they have climbed 78% from two weeks ago. Measured on a per-capita basis, New Jersey and New York are faring the worst, along with several southern states, including Virginia, Mississippi and South Carolina.

    Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began

    Other COVID-19 news you should know about:

    • Shares of Lucira Health Inc.
    LHDX,
    -29.03%

    more than quadrupled Tuesday after it submitted an application for emergency-use authorization to the U.S. Food and Drug Administration for over-the-counter use of a molecular COVID-19 and flu test, Dow Jones Newswires reported. The test was granted emergency-use authorization for point-of-care use in a healthcare setting in November. The company now “intends to make the test broadly available to consumers both online as well as in pharmacies.”

    • Salesforce Inc.
    CRM,
    +3.57%

    has become the latest big tech player to say it hired too aggressively during the COVID pandemic; it is now planning to lay off about 10% of its workforce, MarketWatch’s Emily Bary reported. The company will also exit some real estate and cut back on office space, it disclosed in a filing with the Securities and Exchange Commission. The plan is aimed at reducing operating costs, boosting operating margins and driving “profitable growth.” “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” the company’s co-chief executive, Marc Benioff, said in a letter to employees that was also filed with the SEC. The company had 73,541 employees as of Jan. 31, 2022, according to its last annual filing with the SEC.

    Read: Here are the companies in the layoffs spotlight; Salesforce joins Intel, Google, HP, Amazon, Cisco

    The recent headlines about tech layoffs don’t seem to match broader economic indicators, which show a strong job market and a historically low unemployment rate. The Wall Street Journal’s Gunjan Banerji explains the disconnect. Illustration: Ali Larkin

    • Pfizer Inc.
    PFE,
    -2.20%

    has gone from being a COVID darling to a “show-me” launch story, according to Bank of America analysts, who downgraded the stock to neutral from buy on Wednesday, citing declining COVID revenues and uncertainty about how new products will perform. Analysts are expecting revenue from Pfizer’s COVID vaccine Comirnaty and its antiviral Paxlovid to decline by about $32 billion from 2022, wider than the consensus number of a decline of $25 billion. “While new launches can partially address the $17 billion LOE (loss of exclusivity) hole in 2025 to 2030, longer term growth is unclear,” the analysts wrote in a note to clients.

    Here’s what the numbers say:

    The global tally of confirmed cases of COVID-19 topped 666.8 million on Tuesday, while the death toll rose above 6.69 million, according to data aggregated by Johns Hopkins University.

    The U.S. leads the world with 100.8 million cases and 1,094,010 fatalities.

    The Centers for Disease Control and Prevention’s tracker shows that 229.1 million people living in the U.S., equal to 69% of the total population, are fully vaccinated, meaning they have had their primary shots.

    So far, just 47 million Americans have had the updated COVID booster that targets the original virus and the omicron variants, equal to 15.1% of the overall population.

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  • Flight disruptions: Florida hit by air traffic control issue; Denver by freezing fog | CNN

    Flight disruptions: Florida hit by air traffic control issue; Denver by freezing fog | CNN

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    CNN
     — 

    Two far-apart states are seeing fresh air travel problems on Monday.

    Air traffic control issues triggered hours-long flight delays to Florida airports, the Federal Aviation Administration told CNN. And the main airport in Denver, Colorado, is seeing substantial cancellations and delays because of a fresh round of winter weather.

    Late Monday afternoon, the FAA told CNN that the issue in Florida was resolved.

    “The FAA is working toward safely returning to a normal traffic rate in the Florida airspace,” the agency said in a statement.

    Earlier in the day, the FAA told CNN that it had “slowed the volume of air traffic into Florida airspace due to an air traffic computer issue.”

    A publicly available airspace status notice showed flight delays early Monday afternoon averaging nearly three hours with a maximum delay up to six hours.

    The FAA said the issue was with the En Route Automation Modernization (ERAM) system at the Miami Air Route Traffic Control Center.

    That center is responsible for controlling millions of cubic miles of airspace for commercial flights over Florida.

    A spokesperson for Miami International Airport attributed delays there to a Florida-wide “FAA computer system issue.”

    The FAA said earlier that Monday would be a busy post-Christmas travel day with 42,000 flights scheduled, “with possible heavier volume from south to north.”

    Some of Florida’s key airports serving tourists have been affected by the air traffic computer problem, according to flight tracking site FlightAware.

    They include Miami International Airport (MIA), Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO).

    About 750 flights originating or destined for the Denver International Airport were either delayed or canceled Monday because of inclement weather, according to FlightAware.

    As of 4:20 p.m. ET, about 285 flights set to depart Denver International were delayed, and almost 130 flights were canceled, FlightAware said. Almost 215 flights set to arrive, were delayed and just over 130 were canceled.

    According to CNN Weather, Denver has been reporting freezing fog with temperatures in the 20s since 6 a.m. local time.

    Visibility has been at or below a quarter of a mile all day. Light snow fell overnight, but the primary reason for the delays and cancellations is the freezing fog and low visibility.

    The airport at Denver was particularly hard hit last week during Southwest’s service meltdown.

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  • Montgomery, Alabama, airport worker dies on ramp in incident involving American Airlines regional jet | CNN

    Montgomery, Alabama, airport worker dies on ramp in incident involving American Airlines regional jet | CNN

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    CNN
     — 

    A worker at the Montgomery Regional Airport in Alabama died Saturday in an incident on the ramp, the Federal Aviation Administration said Saturday.

    The Montgomery Regional Airport said in a statement an American Airlines/Piedmont Airlines ground crew employee was “involved in a fatality” around 3 p.m.

    “We are saddened to hear about the tragic loss of a team member of the AA/Piedmont Airlines,” said Wade A. Davis, the airport’s executive director. “Our thoughts and prayers are with the family during this difficult time.”

    American Airlines said in a statement it was “devastated by the accident involving a team member,” adding, “Our thoughts and prayers are with the family and our local team members. We are focused on ensuring that all involved have the support they need during this difficult time.”

    All inbound and outbound flights were grounded for more than four hours Saturday afternoon, but the airport said it returned to normal operations as of 8:30 p.m.

    The victim was not named, and the circumstances of the death were not immediately released. The FAA and the National Transportation Safety Board will both investigate.

    The flight, operated by regional carrier Envoy Air, was scheduled to depart Montgomery for Dallas-Fort Worth Saturday afternoon, according to the flight tracking site FlightAware.com.

    CNN reached out to Envoy Air for further information Saturday.

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  • Southwest flights near normal after holiday chaos

    Southwest flights near normal after holiday chaos

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    Southwest flights near normal after holiday chaos – CBS News


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    Southwest Airlines says it returned to a “relatively” normal flight schedule on Friday after a weeklong meltdown resulted in thousands of flight cancellations. Michael George has the latest.

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  • Southwest planes are back in the air — and the apologies keep flying, too | CNN

    Southwest planes are back in the air — and the apologies keep flying, too | CNN

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    CNN
     — 

    The boss of Southwest Airlines has vowed he will “make good” to passengers hit by his company’s disastrous holiday meltdown as the carrier was delivering on its promise to resume better service on Friday.

    “This has impacted so many people – so many customers – over the holidays,” CEO Bob Jordan said in an interview on ABC’s “Good Morning America.”

    “I’m extremely sorry for that. There’s just no way almost to apologize enough.”

    Jordan said reimbursements for passengers would cover travelers’ costs including “rental cars, hotel rooms, meals, booking customers on other airlines – that will all be part of what we’re covering.”

    “We’re offering refunds, covering expenses – we’ll be going back out with even more after that,” he said. “Beyond safety, there is no greater focus at this point than taking care of our customers, reuniting them with their bags, getting refunds processed.”

    The airline’s difficulties started with the massive, frigid winter storm, but they lingered – and even worsened – at Southwest as other major airlines recovered. Almost 15,800 flights Southwest have been canceled since December 22 in a disruption that has shaken the company to its core.

    “This was just an unprecedented storm for everybody – for all airlines,” Jordan said. “The storm had an impact, but we had impacts beyond the storm that obviously impacted Southwest very differently.”

    Jordan said the airline would fly on Friday its full schedule of around 3,900 flights. So far, it’s working out as promised – things are much, much improved.

    The flight tracking site FlightAware shows Southwest has canceled only 43 flights by 2:20 p.m. ET, or just 1% of its total flights.

    In fact, it’s been the best day for flying since the winter storm first barreled through much of the US before Christmas. Only 118 flights total have been canceled for Friday as of 2:20 p.m. ET. As for delays, there were about 2,850 in the US. Southwest accounted for roughly 460 of those.

    As for Saturday, there wasn’t a single Southwest cancellation posted as of 3:20 p.m. ET Friday, and only 20 for the US.

    Southwest has set up Southwest.com/traveldisruption for customers to submit refund and reimbursement requests for meals, hotel and alternate transportation; as well as to connect customers to their baggage.

    While planes are in the air again, there are still mountains of misplaced luggage scattered across the land.

    Take the case of Southwest passenger Lisa Carpenter. She’s finally heading home to Phoenix after she was stranded in Chicago this week. She said she got a call from Southwest on Friday morning with news her missing luggage made it to her original destination and that FedEx would ship the bags to her home.

    “My bags made it to Albany, New York, but I didn’t. I don’t know how, but they didn’t have a flight for me. I don’t know how that happened, but I didn’t get there to see my family,” Carpenter told CNN.

    She also said she plans to purchase a tracking device for her luggage before traveling again, and she’s looking to fly with other carriers.

    “I will be very skeptical about booking with Southwest again,” she said. “I was out here alone and had to buy new clothes.”

    Top US government officials have been disconcerted, to say the very least, about how Southwest got to this point. And they’re demanding Southwest makes things right – or face financial repercussions.

    The DOT formally warned Southwest on Thursday that it will face consequences if it fails to make right by stranded and inconvenienced passengers.

    Transportation Secretary Pete Buttigieg wrote in a letter to Jordan that officials will take action against the airline if it does not follow through on promises to reimburse passengers for alternative transportation costs, as well as provide meals, hotels, refunds and baggage reunification.

    The penalties include the ability to levy fines.

    “It would be an unfair and deceptive practice not to fulfill this commitment to passengers,” Buttigieg wrote, specifically referring to alternative travel reimbursements.

    “The Department will use the fullest extent of its investigative and enforcement powers to hold Southwest accountable if it fails to adhere to the promises made to reimburse passengers for costs incurred for alternate transportation.”

    Those fines could be substantial.

    “The airline said to me that they were going to go above and beyond what’s required of them,” Buttigieg said Thursday in an interview with NBC News. “I’m looking to make sure they actually do that, and if they don’t, we are in a position to levy tens of thousands of dollars per violation per passenger in fines.”

    A traveler looks at luggage in the baggage claim area inside the Southwest Airlines terminal at St. Louis Lambert International Airport on Wednesday.

    The airline’s chief commercial officer, Ryan Green, offered his regrets Thursday over the collapse of services, promising to rebuild customer relations that have sunk to rock bottom.

    “My personal apology is the first step of making things right after many plans changed and experiences fell short of your expectations of us,” Green said in a video.

    “We’re continuing to work to make this up to you, and you’ll continue to hear about that soon. But for now, we’re focused on restoring the reliability and level of customer experience we expect of ourselves, and you expect of us.”

    His remarks came as Buttigieg made his own scathing assessment Southwest’s troubles, calling the situation a complete “meltdown.”

    “You’ve got a company here that’s got a lot of cleaning up to do,” he said.

    Ask Southwest Airline employees about their company’s technology. You won’t get many raves.

    While Southwest grew from a Texas-based discount airline operating three planes into one of the nation’s largest, union officials representing Southwest workers say the company did not keep pace with technology changes. And they say they’ve been raising concerns for years.

    “We’ve been harping on them since 2015-ish every year,” Mike Santoro, a captain and vice president of the Southwest Airlines Pilots Association, told CNN.

    They and the airline itself described an internal process that requires multiple departments to manually redesign the airline’s schedule – a system that works “the vast majority of the time,” the airline said in a statement.

    When something goes wrong, the Southwest software – including the crew scheduling system tool – leaves much of the work of rebuilding that delicate network to be done manually.

    Some passengers were taking all of this in stride and showed some sympathy for Southwest.

    Several people at Hartsfield-Jackson Atlanta International Airport spoke to CNN’s Nick Valencia on Thursday about their travel experiences with Southwest this holiday season.

    “I mean, it’s just par for the course. This is flight travel, everyone’s trying to get everywhere at the same time. Unfortunately, Southwest took the brunt of this year’s travel unfortunate situation,” Roderic Hister told CNN.

    When asked what he thought about the lack of lines at the Southwest counters at the airport, Hister said: “Maybe speaks to the improvements that they’re trying to make, because there’s not long lines, people aren’t here complaining. So, maybe you know, the efforts to redeem themselves are working.”

    Winston Williams, standing near Hister, said he intends to still use the airline in the future. “I like Southwest. I mean, the bags are free,” Williams said.

    kaitlan and bride split

    ‘I was in shock’: Bride describes learning she would miss her own wedding

    But plenty of folks are still taking a hard line with Southwest.

    Elaine Chao, who served as secretary of transportation during the Trump administration, described the Southwest Airlines breakdown as “a failure of unbelievable proportions.”

    She told CNN it was “a perfect storm of all the things that have been going on with the company. It’s going to take them a very long time” to rebuild trust with consumers, she added.

    Phil Dengler, co-founder of the travel advice website The Vacationer, concurs.

    “It is going to take a long time for Southwest Airlines to earn back public trust. While the extreme weather affected other airlines, Southwest experienced a true meltdown at the worst possible time,” he said Thursday in an email to CNN Travel.

    “A large portion of Americans only fly once per year, and they want a problem-free experience. I believe many people are going to pause when booking their next flight and they see Southwest Airlines as the cheapest option,” Dengler said.

    “While the low prices are enticing, this meltdown is going to cause many travelers to explore other low-cost options.”

    Dengler cautions to proceed carefully regarding these promised refunds.

    “Southwest says, ‘We will honor reasonable requests for reimbursement for meals, hotel and alternate transportation,’” he said. “While Southwest is being vague on how much they will reimburse, I would avoid any expensive hotels or restaurants. Use Google Hotels to find nearby hotels near the airport where you are stranded.”

    And he also cautions about piling up a big tab.

    “Do a few Google searches such as ‘free things to do near me.’ I doubt Southwest is going to reimburse tours or other paid activities, so I would not book any expensive excursions that you cannot afford.”

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  • Southwest Airlines cancels another 2,300 flights with schedule in chaos

    Southwest Airlines cancels another 2,300 flights with schedule in chaos

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    Southwest Airlines continued to extract itself from sustained scheduling chaos Thursday, cancelling another 2,350 flights after a winter storm overwhelmed its operations days ago.

    The Dallas carrier acknowledged it has inadequate and outdated operations technology that can leave flight crews out of position when adverse weather strikes.

    Southwest
    LUV,
    +3.70%

    was the only airline unable to recover from storm-related delays that began over the weekend when snow, ice and high winds raked portions of the country.

    As has been the case every day this week, the vast majority of flight cancellations nationwide, are Southwest flights.

    There were 2,451 flights cancelled before noon Thursday in the U.S., and 2,357 were Southwest routes, or about 58% of its entire schedule, according to the FlightAware tracking service.

    The airline has warned that cancellations will continue for days.

    The federal government is investigating what happened at Southwest with total cancellations soaring past 10,000 early in the week.

    Southwest added a page to their website specifically for travelers who were stranded, but thousands of customers remain unable to reach the airline.

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  • Chaos at U.S. airports continues to grow as Southwest Airlines cancels 2,500 more flights

    Chaos at U.S. airports continues to grow as Southwest Airlines cancels 2,500 more flights

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    Chaos at U.S. airports continues to grow as Southwest Airlines cancels 2,500 more flights – CBS News


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    Thousands of travelers have been left in limbo at airports across the country as they manage flight delays and cancellations during the busiest travel week of the year. CBS News’ Tanya Rivero takes a look at what caused Southwest Airlines to cancel more than 15,000 flights in one week and shares tips for passengers as we head into another busy travel weekend.

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  • How Southwest failed the holidays: Four charts explaining the cancellations | CNN Business

    How Southwest failed the holidays: Four charts explaining the cancellations | CNN Business

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    CNN
     — 

    A blast of severe winter weather last week caused thousands of Southwest Airlines flight cancellations and spiraled into a complete meltdown of its flight system. In the days since, the carrier’s scramble to recover has been slow and, some passengers argue, largely unsuccessful. But experts say Southwest’s mess is actually the culmination of issues that have been building over several years.

    Since Dec. 22, the beleaguered airline has canceled more than half of its typical flight schedule, and by late Wednesday about 87% of all canceled flights in the US were from Southwest alone, according to industry trackers FlightRadar24 and FlightAware.

    The dire situation, which has exasperated passengers and caught the eye of government regulators, has magnified this week as other major airlines recovered from the extreme cold, ice and snow that gripped much of the United States over the holiday weekend.

    The company has apologized to its passengers and employees for the daily cancellations and reduced its capacity by roughly two thirds on Thursday, according to a CNN review of flight data.

    This week’s meltdown is not the first time the company has found itself in this predicament. In October 2021, Southwest canceled more than 2,000 flights over a four-day period. While the airline blamed the crisis partly on bad weather in Florida, Southwest canceled flights for far longer than its competitors.

    But much of Southwest’s mess may be the result of long-term problems unrelated to the weather.

    Chief among them are outdated internal processes and information technology. Southwest’s scheduling system hasn’t changed much since the 1990s, according to Captain Casey Murray, president of the Southwest Airlines Pilots Association.

    Southwest has also acknowledged the company’s outdated infrastructure. “We’ve talked an awful lot about modernizing the operation, and the need to do that,” CEO Bob Jordan told employees in a memo obtained by CNN.

    Over the years, the airline’s cancellation rate has crept up, tripling from 2013 to September 2022, the most recent data available from US Bureau of Transportation Statistics, which tracks the airlines’ performance, and well before the recent crisis.

    The bureau has only released data for 2022 through September. To ensure a fair comparison, CNN only analyzed the carrier’s data from January to September in previous years.

    Cancellation rates among airlines fluctuate year-to-year, depending on weather and other factors, such as Covid-19, which resulted in a major industry-wide disruption in the early months of the pandemic in 2020.

    But Southwest has consistently failed to perform as well as its competitors when it comes to cancellations, according to bureau data.

    In several years over the last decade, the airline had higher cancellation rates compared to other major airlines, the data shows.

    It’s not just cancellations. Southwest has also seen its on-time percentage slide in recent years to the lowest point in a decade. Through September of 2022, well before the carrier’s current struggles, only about 7 in 10 of its flights have arrived on time.

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  • Buttigieg Vows ‘Extraordinary Effort’ To Make Southwest Compensate Customers

    Buttigieg Vows ‘Extraordinary Effort’ To Make Southwest Compensate Customers

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    U.S. Transportation Secretary Pete Buttigieg promised Wednesday that his office is putting intense pressure on Southwest Airlines to compensate customers affected by the company’s widespread flight cancellations.

    “This is going to take an extraordinary level of effort by Southwest, and we will mount an extraordinary effort to make sure that they’re meeting their obligations,” Buttigieg pledged on ABC’s “Good Morning America.”

    The word meltdown “gets thrown around a lot, sometimes in coverage of travel disruptions,” he said, “but in this case, it’s the only word I can think of to describe what’s happening at Southwest Airlines.”

    While all U.S. airlines had mass cancellations this past week because of extreme winter weather across the country, most have resumed normal operations and have an average 4% cancellation rate right now. Southwest is the outlier, Buttigieg noted, with its rate still above 60%. While most airlines’ rates steadily improved after last week’s storm, Southwest’s have gotten worse. Since Thursday, the airline has canceled nearly 11,000 flights, according to the flight-tracking service FlightAware ― all during one of the busiest travel weeks of the year when people fly around the country to be with family for the winter holidays.

    “We are past the point where they could say that this is a weather-driven issue,” Buttigieg said.

    A traveler in Houston on Thursday looks over unclaimed luggage at the William P. Hobby Airport.

    Brandon Bell via Getty Images

    The Texas-based airline’s troubles appear to be tied to its uncommon operational configuration, The New York Times reported. While most airlines have their planes return to a “hub” airport after flying out to other cities, Southwest typically has its planes fly from city to city without returning to a hub ― making it difficult to strategize and arrange plane availability after weather causes mass delays.

    Southwest CEO Bob Jordan said in a video Tuesday night that his company is in the process of regrouping and he hopes operations will resume normally before the week’s end.

    “Our plan for the next few days is to fly a reduced schedule and reposition our people and planes,” he said. “We’re making headway, and we’re optimistic to be back on track before next week.”

    But that does little for Southwest passengers who’ve had to drop large amounts of money booking new flights with other airlines and paying for lodging while they wait for Southwest to rebook them. Those customers are owed fair compensation, Buttigieg said Wednesday.

    “They need to make sure that these stranded passengers get to where they need to go and that they’re provided adequate compensation, not just for the flight itself,” he said of Southwest. “They should absolutely be providing refunds for those flights that were canceled if passengers aren’t able to fly or choose not to fly, but also things like hotels, like ground transportation, like meals, because this is the airline’s responsibility.”

    Those experiences are especially challenging for people traveling with children, he added.

    Buttigieg said he’s spoken to Jordan and that the CEO has pledged to meet his expectations. If not, there’s a good chance the Department of Transportation will step in. Just last month, the department ordered Denver-based Frontier Airlines and five foreign carriers to pay around $600 million in refunds to customers impacted by their delays and cancellations.

    There’s also pressure from the Senate Commerce Committee, which has promised an investigation into Southwest’s failures.

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  • Southwest Airlines flight cancellations continue to snowball

    Southwest Airlines flight cancellations continue to snowball

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    DALLAS — Travelers who counted on Southwest Airlines to get them home suffered another wave of canceled flights Wednesday, and pressure grew on the federal government to help customers get reimbursed for unexpected expenses they incurred because of the airline’s meltdown.

    Exhausted Southwest
    LUV,
    -5.16%

    travelers tried finding seats on other airlines or renting cars to get to their destination, but many remained stranded. The airline’s CEO said it could be next week before the flight schedule returns to normal.

    Adontis Barber, a 34-year-old jazz pianist from Kansas City, Missouri, had camped out in the city’s airport since his Southwest flight was canceled Saturday and wondered if he would ever get to a New Year’s gig in Washington, D.C.

    “I give up,” he said. “I’m starting to feel homeless.”

    By early afternoon on the East Coast, about 90% of all canceled flights Wednesday in the U.S. were on Southwest, according to the FlightAware tracking service.

    Other airlines recovered from ferocious winter storms that hit large swaths of the country over the weekend, but not Southwest, which scrubbed 2,500 flights Wednesday and 2,300 more on Thursday.

    The Dallas airline was undone by a combination of factors including an antiquated crew-scheduling system and a network design that allows cancellations in one region to cascade throughout the country rapidly. Those weaknesses are not new — they helped cause a similar failure by Southwest in October 2021.

    The federal government is now investigating what happened at Southwest, which carries more passengers within the United States than any other airline.

    In a video that Southwest posted late Tuesday, CEO Robert Jordan said Southwest would operate a reduced schedule for several days but hoped to be “back on track before next week.”

    Jordan blamed the winter storm for snarling the airline’s “highly complex” network. He said Southwest’s tools for recovering from disruptions work “99% of the time, but clearly we need to double down” on upgrading systems to avoid a repeat of this week.

    “We have some real work to do in making this right,” said Jordan, a 34-year Southwest veteran who became CEO in February. “For now, I want you to know that we are committed to that.”

    Transportation Secretary Pete Buttigieg, who has criticized airlines for previous disruptions, said that “meltdown” was the only word he could think of to describe this week’s events at Southwest. He noted that while cancellations across the rest of the industry declined to about 4% of scheduled flights, they remained above 60% at Southwest.

    From the high rate of cancellations to customers’ inability to reach Southwest on the phone, the airline’s performance has been unacceptable, Buttigieg said. He vowed to hold the airline accountable and push it to reimburse travelers.

    “They need to make sure that those stranded passengers get to where they need to go and that they are provided adequate compensation,” including for missed flights, hotels and meals, he said Wednesday on ABC’s “Good Morning America.”

    On its website, Southwest told customers affected by canceled or delayed flights between Dec. 24 and Jan. 2 to submit receipts. The airline said, “We will honor reasonable requests for reimbursement for meals, hotel, and alternate transportation.”

    Navy physician Lt. Cmdr. Manoj Mathew said after spending hours on hold over two days Southwest reimbursed him for the first leg of his family’s trip from Washington to Houston — they drove through terrible weather after the Dec. 23 flight was canceled. Now he is worried whether Southwest will operate the return flight Sunday.

    “I’m trying to reach other airlines,” he said. “There are no flights, plus it’s very expensive for us.”

    Leaders of Southwest’s labor unions have warned for years that the airline’s crew-scheduling system, which dates to the 1990s, was inadequate, and the CEO acknowledged this week that the technology needs to be upgraded.

    The other large U.S. airlines use “hub and spoke” networks in which flights radiate out from a few major or hub airports. That helps limit the reach of disruptions caused by bad weather in part of the country.

    Southwest, however, has a “point to point” network in which planes crisscross the country during the day. This can increase the utilization and efficiency of each plane, but problems in one place can ripple across the country and leave crews trapped out of position.

    Those issues don’t explain all the complaints that stranded travelers made about Southwest, including no ability to reach the airline on the phone and a lack of help with hotels and meals.

    Teal Williams, a 48-year-old active-duty Army reservist from Utah, was stuck at the Denver airport with her husband and two teenage kids on Christmas Day after their flight to Des Moines, Iowa, was canceled. She said Southwest employees had no information about flights and didn’t offer food vouchers while elderly passengers sat in wheelchairs for hours and mothers ran out of formula for their infants.

    “It was just imploding, and no one could tell you anything,” Williams said. The airline employees “were desperately trying to help, but you could tell they were just as clueless as everybody else … it was scary.”

    Unable to find plane, train or bus seats, Williams and her family felt lucky to score a rental car. They drove 12 hours to Iowa.

    Barber, the musician from Kansas City, already missed a performance Sunday in Dallas but had hoped to make it to Washington in time for a New Year’s performance near the National Mall.

    “I’m missing out on money,” he lamented.

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  • Southwest, NIO, AMC, Tesla, and More Stock Market Movers Tuesday

    Southwest, NIO, AMC, Tesla, and More Stock Market Movers Tuesday

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  • Travelers “beyond frustrated” by Southwest Airlines cancellations: “It’s been hell”

    Travelers “beyond frustrated” by Southwest Airlines cancellations: “It’s been hell”

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    Southwest Airlines apologizes as thousands of flights are canceled and delayed


    Southwest Airlines apologizes as thousands of flights are canceled and delayed

    02:22

    The winter storm that disrupted travel plans over the weekend and created an epic pile-on of flight cancellations for Southwest Airlines left the carrier’s passengers “beyond frustrated,” as one put it to CBS DFW. Thousands of families were stranded, with some waiting days to board planes.

    Southwest customers at Dallas Love Field expressed disappointment, frustration and anger Monday after facing multiple flight delays and cancellations since before Christmas. 

    Talia Jones, a Southwest Air customer, told CBS DFW she was “beyond frustrated and hurt because I can’t see my dad. So yeah, it’s very disappointing.”

    As of 5 a.m. ET Tuesday, Southwest was responsible for an overwhelming majority of U.S. cancellations for the new day, according to flight tracking website FlightAware.com: 2,495 out of 2,809 for all carriers.

    Two-thirds of Southwest’s flights had been canceled as of Monday afternoon, according to FlightAware.  

    On Monday afternoon, the board at Dallas Love Field, showed every single arrival had been canceled, according to reporter Kelly Laco.

    At Chicago’s Midway International Airport – where Southwest is the main carrier – the wait times were high, and patience was running low Monday night, CBS Chicago said.

    The situation  was described by one traveler as nothing short of a mess. In addition to long lines taking up space, hundreds and hundreds of bags were waiting to be claimed as the cancellations and delays kept piling up.

    “It’s been hell,” said Denzil Smothers, whose flight was canceled. 

    The federal Department of Transportation on Monday said it would investigate the meltdown, saying it was “concerned by Southwest Airlines’ disproportionate and unacceptable rate of cancellations and delays as well as the failure to properly support customers experiencing a cancellation or delay.” 

    “As more information becomes available the Department will closely examine whether cancellations were controllable and whether Southwest is complying with its customer service plan as well as all other pertinent DOT rules,” the department said in a statement.

    Traveler Michael Bauzon and his family planned on flying out of Orlando International Airport on Friday to return home to Indianapolis in time for Christmas on Sunday. Instead, the four spent the holidays in a hotel after their flight was canceled, Bauzon told CBS affiliate WKMG, and were back at the airport on Monday — where they continued to wait.

    “This morning we got here at 4:30 for a 7:05 flight, we looked it up, and oh it had just been canceled,” he said, gesturing to a line snaking in front of the Southwest service counter. “It’s a four- to five-hour line … before they can get us on a flight — if they can get us on a flight,” he said.

    Southwest cancels more than 2,800 flights
    Passengers lined up by the Southwest Airlines counter at San Francisco International Airport on Dec. 26, 2022.

    Tayfun Coskun / Anadolu Agency via Getty Images


    Widespread storm, outdated tech

    In a statement Monday that opened with “heartfelt apologies,” Southwest said that its geography made it “uniquely” vulnerable to the storm, with half of the airports in which it flies affected by winter weather.

    “We were fully staffed and prepared for the approaching holiday weekend when the severe weather swept across the continent, where Southwest is the largest carrier in 23 of the top 25 travel markets in the U.S. This forced daily changes to our flight schedule at a volume and magnitude that still has the tools our teams use to recover the airline operating at capacity,” the statement said. 

    “We anticipate additional changes with an already reduced level of flights as we approach the coming New Year holiday travel period,” it noted. 

    The company also blames a lack of technology. “Part of what we’re suffering is a lack of tools. We’ve talked an awful lot about modernizing the operation, and the need to do that,” CEO Bob Jordan said in an internal message on Sunday that was reported by several media outlets and the flight attendants’ union.

    Jammed phone lines, systems

    Southwest directed customers away from jammed phone lines, noting that it was experiencing “system issues” amid elevated demand.

    Spokesperson Chris Perry said the airline’s online booking and check-in systems are still operating, but were also jammed because of “abnormally high” volumes of traffic on their site. “We are re-accommodating as many Customers as possible based on available space,” he told CBS News.

    As Southwest blamed technological issues, the flight attendants’ union, Transit Workers Union 556, accused the airline of contributing to the problem by underinvesting in technology for years.

    “The lack of technology has left the airline relying on manual solutions and personal phone calls, leaving flight attendants on hold with Southwest Airlines for up to 17 hours at a time simply to be released to go home after their trip, or while attempting to secure a hotel room or know where their next trip will be,” the union said in a statement. “While reroutes and rescheduling are understood to be a part of the job in the airline industry, the massive scale of the failure over the past few days points to a shirking of responsibility over many years for investing in and implementing technology that could help solve for many of the issues that plague flight attendants and passengers alike.”

    The union and airline have been in contract negotiations for four years. 

    — With reporting by Zel Elvi, Kathryn Krupnik, Kris Van Cleave and Brian Dakss.

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  • Southwest Airlines cancels two-thirds of its flights, with more cancellations planned

    Southwest Airlines cancels two-thirds of its flights, with more cancellations planned

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    Southwest Airlines Co. canceled more than two-thirds of its flights Monday and plans to slash its schedules Tuesday and Wednesday, in a meltdown that stranded thousands of customers and that worsened while other airlines began to recover from the holiday winter storm.

    “We had a tough day today. In all likelihood we’ll have another tough day tomorrow as we work our way out of this,” Chief Executive Bob Jordan said in an interview Monday evening. “This is the largest scale event that I’ve ever seen.” 

    Southwest
    LUV,
    +1.78%

    plans to operate just over one-third of its typical schedule in the coming days to give itself leeway for crews to get into the right positions, he said, adding that the reduced schedule could be extended.

    Southwest’s more than 2,800 scrapped flights Monday, the highest of any major U.S. airline, came as the Dallas-based airline proved unable to stabilize its operations amid the past week’s storm. Between Thursday and Monday, the airline canceled about 8,000 flights, according to FlightAware.

    On Monday, the Department of Transportation called Southwest’s rate of cancellations “disproportionate and unacceptable” and said it would examine whether the cancellations were controllable and whether the airline is complying with its customer service plan.

    Ryan Green, Southwest’s chief commercial officer, said in an interview the airline is taking steps such as covering customers’ reasonable travel costs—including hotels, rental cars and tickets on other airlines, and will be communicating the process for customers to have expenses reimbursed. He also said customers whose flights are being canceled as the airline recovers are entitled to refunds if they opt not to travel. 

    The troubles at Southwest intensified Monday despite generally improving weather conditions and warming temperatures throughout much of the eastern half of the country, which had been pummeled by snow, wind and subfreezing temperatures in recent days.

    An expanded version of this report appears on WSJ.com.

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