Southwest Airlines October Flight-Cancellations Meltdown Cost Carrier $75 Million

Southwest Airlines on Thursday said mass flight cancellations and delays that disrupted travel for tens of thousands of customers earlier this month cost it $75 million.
Dallas-based Southwest canceled more than 2,000 flights between Oct. 8 and Oct. 13. It blamed the meltdown on bad weather in Florida and air traffic control issues, which was compounded by staffing shortages. Its closest rivals, including those in Florida, had relatively minimal cancellations.
The hit came from flight cancellations, customer refunds and “gestures of goodwill.”
The airline reported a third-quarter profit of $446 million on Thursday thanks to a boost from federal aid and voluntary leaves of absence by employees, but it said staff shortages led to operational problems that hurt its bottom line.