Southwest fatality cost 100 million dollars
Southwest Airlines says April’s fatal accident has cost it about $100 million in lost business.
It announced the figure during its second-quarter earnings call and expects the impact of the April 17 accident to recede in the next quarter.
"I am especially proud of the heroic efforts of our people to address and overcome the challenges resulting from the accident," CEO Gary Kelly said.
An engine explosion on Flight 1380 caused flying debris to puncture the fuselage and window killing one person.
The airline had already said it expected weaker sales due to the accident as it immediately pulled all of its advertising.
It says there will be a ‘significant improvement’ on bookings over the course of the third quarter.
Like all major carriers, the rising cost of fuel is also hitting Southwest’s bottom line.
As a result, it is trimming capacity growth in the coming months, but pledged to press on with its much vaunted entry into the Hawaii market.
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