Southwest's fatal accident cost it $100 million

Southwest Airlines said a fatal accident in April cost the airline $100 million worth of business.The Dallas-b...

Posted: Jul 26, 2018 1:58 PM
Updated: Jul 26, 2018 1:58 PM

Southwest Airlines said a fatal accident in April cost the airline $100 million worth of business.

The Dallas-based carrier reported a strong second-quarter profit Thursday, but it noted that the company is still feeling the effects from the Flight 1380 accident that left one passenger dead after she was partially blown out of a plane's window.

"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 in a statement.

He added that the financial effects of the April 17 accident will subside in the third quarter, with revenue for each seat flown increasing 1%. It had slid 3% following the incident.

Southwest said in June that it expected the accident to have a major impact on its bookings because it had pulled advertising. But the airline said that current bookings are expected to recover and be a "significant improvement" over its second quarter.

Similar to other air carriers, the rising cost of fuel is also hurting Southwest. It said it will slow expansion plans and capacity. However, it will still move forward with its expansion into Hawaii and begin selling tickets later this year.

Southwest's stock is down 20% this year.

Article Comments

West Lafayette
Scattered Clouds
57° wxIcon
Hi: 77° Lo: 56°
Feels Like: 57°
Kokomo
Overcast
58° wxIcon
Hi: 74° Lo: 53°
Feels Like: 58°
Rensselaer
Overcast
57° wxIcon
Hi: 65° Lo: 55°
Feels Like: 57°
Fowler
Overcast
57° wxIcon
Hi: 75° Lo: 52°
Feels Like: 57°
Williamsport
Clear
61° wxIcon
Hi: 76° Lo: 55°
Feels Like: 61°
Crawfordsville
Scattered Clouds
57° wxIcon
Hi: 76° Lo: 57°
Feels Like: 57°
Frankfort
Broken Clouds
56° wxIcon
Hi: 76° Lo: 55°
Feels Like: 56°
Delphi
Overcast
55° wxIcon
Hi: 75° Lo: 53°
Feels Like: 55°
Monticello
Overcast
55° wxIcon
Hi: 75° Lo: 51°
Feels Like: 55°
Logansport
Overcast
57° wxIcon
Hi: 74° Lo: 51°
Feels Like: 57°
Warmer Temps and Multiple Rounds of Rain Ahead
WLFI Radar
WLFI Temps
WLFI Planner

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events