<a href="https://www.dailywire.com/topic/southwest-airlines">Southwest Airlines</a> is ending its policy which allows customers open seating on flights. 
The airline has been unique in the <a href="https://www.dailywire.com/topic/air-travel">industry</a> for its open seating policy, which has been in place for the 50-year existence of the company.  
Southwest’s unofficial motto used to be: “You can sit anywhere you want — just like at church.” But now, due to changing customer preferences, the company will move to a more traditional assigned seating plan with premium seating available for an upcharge.
The <a href="https://www.southwestairlinesinvestorrelations.com/news-and-events/news-releases/2024/07-25-2024-110102603">announcement</a> on Thursday noted how “the research is clear and indicates that 80% of Southwest Customers, and 86% of potential Customers, prefer an assigned seat.”
&#8220;Moving to assigned seating and offering premium legroom options will be a transformational change that cuts across almost all aspects of the Company,&#8221; said Bob Jordan, President, CEO, &amp; Vice Chairman of the Board. 
&#8220;Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice—at the right time—for our Customers, our People, and our Shareholders. We are excited to incorporate Customer and Employee feedback to design a unique experience that only Southwest can deliver.”
He added, “We have been building purposefully to this change as part of a comprehensive upgrade to the Southwest experience as we focus on Customer expectations – and it will unlock new sources of revenue consistent with our laser focus on delivering improved financial performance.&#8221;
In addition to changing the seat assignment procedures, Southwest Airlines announced that it will add redeye flights to its schedule. The first overnight flights will become available in select markets beginning in February 2025.
The change comes as Southwest&#8217;s revenue is down and the company battles safety concerns over its Boeing planes. &#8220;We are taking urgent and deliberate steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives that are designed to drive meaningful top and bottom-line growth,” Jordan said of the change.
In April, a Southwest Boeing plane going from Denver to Houston was forced to make an <a href="https://www.dailywire.com/news/southwest-flight-forced-to-make-emergency-landing-after-engine-cover-rips-off">emergency landing</a> after the cover ripped off one of the plane’s engines and struck the wing flap.

Southwest

Southwest Airlines Changes Open Seating Policy, Says 80% Of Customers Want An Assigned Seat

Air and Space

Air Travel

Business

Southwest Airlines

A Southwest Airlines flight headed from Denver, CO, to Houston, TX, had to make an emergency landing on Sunday after the cover ripped off one of the plane&#8217;s engines, striking the wing flap.
Pilots on the Boeing 737-800 informed air traffic control at the Denver International Airport that &#8220;several passengers and flight attendants heard something loud hit the wing,&#8221; after which the plane was cleared to make a safe emergency landing.
Video of the moment the engine cover ripped away made the rounds on X on Sunday.
ABC News transportation reporter Sam Sweeney shared one clip, commenting, &#8220;Scary moments for passengers on a Southwest flight from Denver to Houston when the engine cover ripped off during flight, forcing the plane to return to Denver Sunday morning.&#8221;
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Scary moments for passengers on a Southwest flight from Denver to Houston when the engine cover ripped off during flight , forcing the plane to return to Denver Sunday morning. <a href="https://t.co/BBpCBXpTsl">pic.twitter.com/BBpCBXpTsl</a>
&mdash; Sam Sweeney (@SweeneyABC) <a href="https://twitter.com/SweeneyABC/status/1777018698345120211?ref_src=twsrc%5Etfw">April 7, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In another clip, shared by Mike Sington, a pilot could be heard talking to air traffic control about the loose engine cowling, and passengers could be heard saying, &#8220;There it goes,&#8221; and, &#8220;There goes the rest of it,&#8221; as the cover broke loose and flew out of sight.
Southwest Airlines addressed the incident in a statement to <a href="https://www.cnn.com/2024/04/07/business/southwest-boeing-737-800-engine/index.html" target="_blank" rel="noopener">CNN</a>, saying, &#8220;We apologize for the inconvenience of their delay but place our highest priority on ultimate Safety for our Customers and Employees.&#8221;
The passengers on the affected flight were transported to Houston on a different plane, and were delayed by several hours.
According to the Federal Aviation Administration, an investigation into the incident is pending. No injuries were reported.
Sunday&#8217;s mishap is just the latest in a string of issues plaguing Boeing, including one incident involving an external panel <a href="https://www.dailywire.com/news/united-airlines-boeing-737-loses-external-panel-mid-air" target="_blank" rel="noopener">falling off</a> as a United Airlines flight was in midair en route from San Francisco to Oregon. The flight crew in that case was not aware the panel had torn free until after they landed.

Southwest Flight Forced To Make Emergency Landing After Engine Cover Rips Off

Airplane

Boeing

<a href="https://www.dailywire.com/topic/southwest-airlines">Southwest Airlines</a> is going viral for their company-wide “<a href="https://www.southwest.com/help/booking/extra-seat-policy">Customer of Size</a>” policy, which allows overweight <a href="https://www.dailywire.com/topic/air-travel">travelers</a> to potentially get extra seats for free if they don’t fit.
The policy states that customers who “encroach upon any part of the neighboring seat(s)” may purchase however many extra seats they need. Those passengers can then request a refund after travel, <a href="https://www.southwest.com/help/booking/extra-seat-policy">according</a> to their website.
Southwest says the policy isn’t focused on just <a href="https://www.dailywire.com/topic/obesity">weight</a>, but applies to anyone who doesn’t fit in the seat because of their body type. The space is determined by the placement of armrests. 
“The armrest is considered to be the definitive boundary between seats,” the policy says. “If you’re unable to lower both armrests and/or encroach upon any portion of a seat next to you, you need a second seat. Our policy does not focus on weight.”
“The purchase of additional seats serves as a notification of a special seating need and allows us to adequately plan for the number of occupied seats onboard,&#8221; the policy continues. “It also helps us ensure we can accommodate all customers on the flight for which they purchased a ticket and avoid asking customers to relinquish their seats for unplanned accommodation.”
A TikTok influencer named Kimmy Garris, who calls herself a “fat solo traveler,” posted a video of herself boarding a Southwest plane in October and asking about their policy for overweight passengers. The customer service agent can be seen giving Garris an extra ticket, which the TikTok user said “should be the industry norm.”
But unlike Garris, many social media users were annoyed by the policy. 
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“Rewarding bad behavior. Society is regressing,” one person <a href="https://twitter.com/lifegripper/status/1735704204675776818">wrote</a>.
“Fat supremacy in action,” another commenter agreed.
Many comments questioned whether tall travelers would get extra perks as well.
“I presume this means that tall people will be upgraded to Business Select class for free, then, [SouthwestAir]?” another person <a href="https://twitter.com/Hilohaw/status/1735696866321600721">asked</a>.
Most social media users worried that the airline giving away free seats to certain passengers would result in ticket prices going up for everyone else.

Southwest Trashed For ‘Customer Of Size’ Policy Which Gives Free Seats To Overweight Travelers

Southwest Trashed For 'Customer of Size' Policy Which Gives Free Seats To Overweight Travelers

Obesity

U.S.

<a href="https://www.dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> continues to see <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">losses</a> stemming from the holiday <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">travel</a> meltdown that left passengers stranded across the nation at the end of last year.
The company announced a net loss of $159 million in the first quarter of 2023 as customers booked fewer flights in reaction to the carrier canceling thousands of flights between December 21 and December 31. Even as other carriers resumed normal operations, Southwest continued to delay and cancel an elevated number of flights.
Southwest CEO Bob Jordan confirmed in an earnings <a href="https://www.prnewswire.com/news-releases/southwest-airlines-reports-first-quarter-2023-results-301808898.html#:~:text=(NYSE%3A%20LUV)%20(the,operating%20revenues%20of%20%245.7%20billion" target="_blank" rel="noopener">announcement</a> released on Thursday that the company incurred the losses due to “cancellations of holiday return travel” and a subsequent “deceleration in bookings” in January and February. He added that demand trends for March were strong, resulting in “solid profitability for the month.”
“We expect solid profits in second quarter 2023 and continue to expect solid profits and year-over-year growth in both margins and return on invested capital for full year 2023,” the executive forecasted. “We also continue to expect our network to be roughly restored to pre-pandemic levels by the end of this year. We remain confident in our low-cost, low-fare business model and our long-term strategy, which is supported by a robust set of strategic initiatives designed to drive significant financial value.”
Southwest has <a href="https://www.dailywire.com/news/southwest-reveals-how-much-holiday-flight-meltdown-will-cost-them" target="_blank" rel="noopener">estimated</a> that between $725 million and $825 million would be lost in the aftermath of the disruptions. The firm reported a $220 million loss in the fourth quarter of 2022 and previously <a href="https://www.dailywire.com/news/southwest-airlines-reports-massive-revenue-hit-after-christmas-meltdown" target="_blank" rel="noopener">warned</a> investors that fallout from the holiday disruptions would continue.
Executives <a href="https://www.dailywire.com/news/we-messed-up-southwest-executive-testifies-on-holiday-meltdown-chaos" target="_blank" rel="noopener">attributed</a> the problems in December to outdated technology systems and announced that Southwest would seek to enhance software used by crew members with a $1.3 billion information technology investment. The internal issues continue to cause disruptions: Southwest <a href="https://www.dailywire.com/news/southwest-sees-massive-number-of-flight-delays-after-technical-issue" target="_blank" rel="noopener">experienced</a> an unspecified technical problem that prompted a nationwide pause in departures on April 18, resulting in delays for nearly half of the carrier’s flights.
Southwest is unique among other major airlines in that flights are coordinated in a point-to-point system rather than a hub model, an arrangement that allows the carrier to service smaller cities more efficiently but worsens delays when the firm experiences unexpected disruptions.
Southwest COO Andrew Watterson <a href="https://www.documentcloud.org/documents/23602424-written-testimony-of-andrew-watterson-coo-southwest-airlines-final" target="_blank" rel="noopener">told</a> members of the Senate Commerce Committee two months ago that the holiday meltdown prompted the company to cancel flights so that crews could position themselves to resume normal operations. The firm has since attempted to <a href="https://www.dailywire.com/news/southwest-gives-disgruntled-customers-frequent-flyer-points-in-aftermath-of-holiday-meltdown" target="_blank" rel="noopener">regain</a> the trust of disgruntled customers, granting many impacted passengers reward point vouchers amounting to $300 in value, as well as reimbursements for meals, hotel accommodations, rental cars, and tickets purchased with other carriers as a result of the delayed and canceled flights.
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“Southwest is intensely focused on reducing the risk of repeating the operational disruption we experienced in December,” Watterson asserted. “We are committed to running a great operation each and every day, and I have the utmost confidence that our people, processes, and technologies will do just that.”
The months since December have seen multiple air travel anomalies beyond Southwest. The Federal Aviation Administration <a href="https://www.dailywire.com/news/faa-reveals-more-details-on-system-outage-that-grounded-flights-nationwide" target="_blank" rel="noopener">grounded</a> all flights nationwide early on January 11 as the agency’s systems failed; officials later determined that “personnel unintentionally deleted files while working to correct synchronization between the live primary database and a backup database.” An international terminal at John F. Kennedy International Airport in New York City was <a href="https://www.dailywire.com/news/fire-power-outage-at-jfk-airport-causes-delayed-canceled-flights" target="_blank" rel="noopener">closed</a> on February 16 and opened on February 17 due to a power outage.

LaGuardia Airport

Southwest Continues To Take Losses From Last Year’s Holiday Travel Meltdown

Southwest Continues To Take Losses From Holiday Meltdown

Air &amp; Space

<a href="https://www.dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> temporarily paused service on Tuesday morning over an unspecified internal technical issue, resulting in delays for nearly half of its <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">flights</a> only months after the company experienced a severe meltdown over the holiday travel season.
The <a href="https://www.dailywire.com/topic/federal-aviation-administration-faa" target="_blank" rel="noopener">Federal Aviation Administration</a> (FAA) <a href="https://twitter.com/FAANews/status/1648334637574356994" target="_blank" rel="noopener">said</a> Southwest requested a nationwide pause in departures and <a href="https://twitter.com/FAANews/status/1648343231569035266" target="_blank" rel="noopener">announced</a> less than one hour later that the “pause has been lifted and their service has resumed.” The agency added that the temporary disruption was caused by a “technical issue with one of their internal systems.”
Roughly 1,800 Southwest flights, equivalent to 43% of the carrier’s departures, were delayed as of early Tuesday afternoon, according to <a href="https://uk.flightaware.com/live/cancelled/" target="_blank" rel="noopener">data</a> from FlightAware, significantly exceeding the 5% of flights delayed at both United Airlines and American Airlines.
“We’ve resumed operations this morning following a pause in service,” Southwest said in a <a href="https://twitter.com/SouthwestAir/status/1648349441693298688" target="_blank" rel="noopener">statement</a> posted to social media, which added that the company would “work to restore operations and accommodate disrupted customers as quickly as possible.”
The technical issue comes after Southwest canceled some 16,700 flights between December 21 and December 31 amid heavy winter storms that impacted the United States in the days before Christmas. Even as other carriers resumed normal operations, Southwest continued to delay and cancel an elevated number of flights for several days. The company <a href="https://www.dailywire.com/news/southwest-reveals-how-much-holiday-flight-meltdown-will-cost-them" target="_blank" rel="noopener">estimated</a> that between $725 million and $825 million would be lost in the aftermath of the cancellations and <a href="https://www.dailywire.com/news/southwest-airlines-reports-massive-revenue-hit-after-christmas-meltdown" target="_blank" rel="noopener">reported</a> an immediate $220 million loss in the fourth quarter of last year.
“Let me be clear: we messed up. In hindsight, we did not have enough winter operational resilience,” Southwest Airlines COO Andrew Watterson said in recent <a href="https://www.dailywire.com/news/we-messed-up-southwest-executive-testifies-on-holiday-meltdown-chaos" target="_blank" rel="noopener">remarks</a> before the Senate Commerce Committee. “This created an unprecedented amount and frequency of required changes to crew schedules that overwhelmed our crew scheduling processes and technology.”
The company is unique among other major airlines in that flights are arranged in a point-to-point system rather than a hub model. Southwest CEO Bob Jordan said in the fourth quarter earnings <a href="https://swamedia.com/releases/release-f30033abc7ead7522c3ea8021c3d5d2d-southwest-airlines-reports-fourth-quarter-and-full-year-2022-results" target="_blank" rel="noopener">report</a> that “the priority of technology and other investments” will be elevated this year to bolster “operational resilience.”
Executives have attempted to <a href="https://www.dailywire.com/news/southwest-gives-disgruntled-customers-frequent-flyer-points-in-aftermath-of-holiday-meltdown" target="_blank" rel="noopener">regain</a> the trust of disgruntled customers after thousands of passengers saw their flights delayed or canceled. At least some received reward points amounting to $300 in value; the company has also vowed to reimburse flyers for meals, hotel accommodations, rental cars, and tickets purchased with other carriers.
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“Southwest is intensely focused on reducing the risk of repeating the operational disruption we experienced in December,” Watterson added. “We are committed to running a great operation each and every day, and I have the utmost confidence that our people, processes, and technologies will do just that.”
The months since the Southwest cancellations have seen multiple air travel anomalies. The FAA <a href="https://www.dailywire.com/news/faa-reveals-more-details-on-system-outage-that-grounded-flights-nationwide" target="_blank" rel="noopener">grounded</a> all flights nationwide early on January 11 as the agency’s Notice to Air Missions system failed; officials later determined that “personnel unintentionally deleted files while working to correct synchronization between the live primary database and a backup database.” A terminal at John F. Kennedy International Airport in New York City was <a href="https://www.dailywire.com/news/fire-power-outage-at-jfk-airport-causes-delayed-canceled-flights" target="_blank" rel="noopener">closed</a> on February 16 and reopened on February 17 due to a power outage and electrical panel fire.

Holiday travel woes for Southwest Airline passengers.

Southwest Sees Massive Number Of Flight Delays After Technical Issue

Southwest Delays Nearly Half Of Flights After Technical Issue

Federal Aviation Administration (FAA)

Southwest Airlines officials confirmed Wednesday that an off-duty pilot flying as a passenger on a flight out of Las Vegas helped take control of the aircraft shortly after takeoff when the plane&#8217;s captain suffered a medical emergency.
Southwest Flight 6013 departed Las Vegas, Nevada, around 6:30 a.m., heading to Columbus, Ohio, when the captain fainted from stomach pain, according to <a href="https://abcnews.go.com/US/southwest-pilot-suffers-medical-emergency-flight-off-duty/story?id=98073854">ABC</a>. Air traffic control audio obtained by <a href="https://www.cnn.com/2023/03/23/us/southwest-airlines-off-duty-pilot-steps-in-medical-emergency/index.html">CNN</a> recorded a flight crew member notifying officials that &#8220;the captain became incapacitated while en route.&#8221;
Chris Perry, a spokesperson for the airline, told <a href="https://nypost.com/2023/03/23/off-duty-pilot-helps-land-jet-after-captain-incapacitated/">The New York Post</a> a credentialed pilot from another airline flying with Southwest entered the cockpit and &#8220;assisted with radio communication while our Southwest Pilot flew the aircraft.&#8221;
According to air traffic audio reported by ABC, the unidentified off-duty pilot notified control tower operators that flight attendants were with the Southwest pilot in the back of the aircraft.
&#8220;But we need to get him on an ambulance immediately,&#8221; the pilot told air traffic controllers, according to air traffic audio.
Airline officials said the pilot re-routed the aircraft to Las Vegas, where emergency health crews stood by to attend to the captain&#8217;s medical needs. Southwest arranged an alternate flight crew to transport the passengers to their destination.
&#8220;We commend the crew for their professionalism and appreciate our customers&#8217; patience and understanding regarding the situation,&#8221; Southwest said in a statement.
Southwest officials did not immediately disclose the pilot&#8217;s condition.
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Southwest told The Post it was &#8220;standard procedure&#8221; to &#8220;request assistance from traveling medical personnel during in-flight medical events.&#8221;
&#8220;This situation just so happened to involve one of our Employees,&#8221; the airline said
The <a href="https://www.faa.gov/newsroom/faa-urges-airlines-pilots-and-others-take-key-safety-actions">Federal Aviation Administration</a> (FAA) has begun investigating the incident, reminding flight personnel of the &#8220;need for continued vigilance and attention to mitigation of safety risks.&#8221;
FAA authorities issued a safety alert amid six runway incidents since January, including &#8220;a near miss at JFK Airport in January, and a Southwest jet that recently came within 200 feet of slamming into an ambulance crossing the runway at Baltimore&#8217;s airport,&#8221; The Post reported.
&#8220;While the overall numbers do not reflect an increase in incidents and occurrences, the potential severity of these events is concerning,&#8221; the FAA said.

US-AVIATION-SOUTHWEST

Southwest Pilot Suffers Medical Emergency In Flight — Off-Duty Flyer Steps In

Airlines

Las Vegas

<a href="https://www.dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> COO Andrew Watterson said in remarks prepared for a Thursday hearing that he and fellow executives “messed up” amid the company’s holiday <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">travel</a> meltdown.
Southwest canceled some 16,700 flights between December 21 and December 31, even as severe winter weather subsided in the days after Christmas. Watterson said in his prewritten opening <a href="https://www.documentcloud.org/documents/23602424-written-testimony-of-andrew-watterson-coo-southwest-airlines-final" target="_blank" rel="noopener">statement</a> before the Senate Commerce Committee that the disruptions prompted the company to cancel flights so that crews could position themselves to resume normal operations.
“Let me be clear: we messed up. In hindsight, we did not have enough winter operational resilience,” he remarked. “It became clear that, with the storm severely disrupting our Denver and Chicago Midway stations concurrently, we did not have enough resiliency in our operation for the severe effect this winter event had on us.”
Flight schedules for Denver and Chicago Midway, which serve as starting and ending bases for one-fourth of the company’s flight crews, were almost entirely canceled by Southwest in the days before Christmas. The same occurred at other airports across the country as the storm moved east, causing communication between employees to deteriorate amid the chaos.
“This lack of effective communication and coordination resulted in compounding, frequent, close-in flight cancellations, rather than our normal practice of batched pre-cancellations further in advance of departure times,” Watterson continued. “This created an unprecedented amount and frequency of required changes to crew schedules that overwhelmed our crew scheduling processes and technology.”
Southwest previously <a href="https://www.dailywire.com/news/southwest-reveals-how-much-holiday-flight-meltdown-will-cost-them" target="_blank" rel="noopener">estimated</a> that between $725 million and $825 million will be lost in the aftermath of the cancellations. The firm reported a $220 million loss in the fourth quarter of last year and <a href="https://www.dailywire.com/news/southwest-airlines-reports-massive-revenue-hit-after-christmas-meltdown" target="_blank" rel="noopener">warned</a> investors that fallout from the company’s holiday meltdown would continue.
Watterson told lawmakers that Southwest would seek to enhance software used by crew members with a $1.3 billion information technology investment. He added that the company has gone “above and beyond” standards created by the Department of Transportation for airlines that cancel or significantly delay flights; customers received reward points amounting to $300 in value as staffers worked to reimburse passengers for meals, hotel accommodations, rental cars, and tickets purchased with other carriers during the meltdown.
“Southwest is intensely focused on reducing the risk of repeating the operational disruption we experienced in December,” Watterson added. “We are committed to running a great operation each and every day, and I have the utmost confidence that our people, processes, and technologies will do just that.”
The hearing before the Senate Commerce Committee occurs as lawmakers file legislation meant to bolster protections for consumers in the wake of the Southwest meltdown. Sen. Richard Blumenthal (D-CT) and Sen. Ed Markey (D-MA), both of whom are members of the Senate Commerce Committee, introduced the Airline Passengers’ Bill of Rights and the Forbidding Airlines from Imposing Ridiculous Fees Act last week.
“Air travelers shouldn’t have to foot the bill for basics like a carry-on bag, a seat next to their children, or even for a sip of water, especially as airlines continue to fail passengers at every turn,” Markey said in a <a href="https://www.markey.senate.gov/news/press-releases/senators-markey-blumenthal-lead-in-introducing-legislation-to-bolster-airline-passenger-protections" target="_blank" rel="noopener">press release</a>. “Our nation’s largest airlines can’t even guarantee consumers that their flights won’t be delayed or cancelled, that their luggage won’t be lost, or that they won’t get stranded at the gate because of overbooking. The status quo won’t fly any longer. We must empower regulators and uphold passengers’ rights so they are treated with dignity before, during, and after their flight.”

‘We Messed Up’: Southwest Executive Testifies On Holiday Meltdown Chaos

Southwest Executive Testifies Before Senators On Holiday Meltdown Chaos

Ed Markey

Richard Blumenthal

U.S. Senate

This article is a companion piece to today’s Morning Wire Afternoon Update. To listen to the podcast version, click <a href="https://www.dailywire.com/podcasts/morning-wire" target="_blank" rel="noopener">here</a>.
Southwest Loses $220 Million
Embattled commercial airline Southwest <a href="https://www.dailywire.com/news/southwest-airlines-reports-massive-revenue-hit-after-christmas-meltdown" target="_blank" rel="noopener">announced</a> a $220 million loss for the last quarter mostly due to the cancellation of nearly 17,000 flights over the busy holiday travel season. The airline is expected to take more losses in the first quarter as well, due to a decline in ticket sales. In contrast, American Airlines posted an $803 million profit for the same period. Southwest CEO Bob Jordan addressed the losses Thursday.
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North Carolina Authorities Warns Of Razor Blades On Gas Pumps
Authorities in North Carolina are <a href="https://www.dailywire.com/news/razor-blades-found-on-north-carolina-gas-pumps" target="_blank" rel="noopener">informing</a> the general public of a concerning development. There have been razor blades found on the handles of gas pumps at several sites in the state.
 COVID Fraud Abounds 
Fraudsters <a href="https://www.dailywire.com/news/fraudulent-lockdown-era-unemployment-payments-may-amount-to-60-billion-government-watchdog-says" target="_blank" rel="noopener">may have stolen</a> as much as $60 billion from the various unemployment insurance programs enacted by lockdown-era stimulus bills, according to a report from the nonpartisan Government Accountability Office. Some $878 billion was paid across all unemployment insurance programs between April 2020 and September 2022. “The unprecedented demand for benefits and the need to implement the new programs quickly increased the risk of financial fraud,” the GAO said in a statement.
Brittney Spears Causes Panic By Deleting Instagram
Concerned fans <a href="https://www.dailywire.com/news/police-perform-wellness-check-on-britney-spears-after-panicked-fans-call-them-over-deleted-instagram-account" target="_blank" rel="noopener">sparked</a> a wellness check for Britney Spears on Tuesday. After Britney Spears deleted her Instagram account, worried fans called law enforcement who performed a wellness check on the star on Tuesday night. A police spokesperson told Page Six later on, “I can confirm that we did get calls into our dispatch, and essentially, I can confirm that we don’t believe that Britney Spears is in any kind of harm or any kind of danger.”
To listen to the audio version of this podcast, <a href="https://podcasts.apple.com/us/podcast/morning-wire/id1576594336" target="_blank" rel="noopener">click here</a>. And for more in-depth discussion of the biggest stories of the day, listen to the latest full episode of Morning Wire every morning.

Friday

Friday Afternoon Update: Southwest Loses $220 Million, NC Warns Of Razor Blades On Gas Handles, Britney Spears Causes Panic

Friday Afternoon Update: Southwest Loses $220 Million, Razor Blades On Gas Handles, Britney Spears Causes Panic

Britney Spears

General

Morning Wire

Podcast

<a href="http://dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> reported a $220 million loss in the fourth quarter and warned <a href="http://dailywire.com/topic/stock-market" target="_blank" rel="noopener">investors</a> that fallout from the company’s holiday meltdown would continue.
Southwest canceled a high number of flights relative to competitors over the Christmas holidays, even after severe winter weather conditions had subsided. The losses, which will cost investors $0.37 per diluted share, will persist into the first quarter of 2023 as the company experiences an “increase in flight cancellations and a deceleration in bookings” in January and February, assumed to be associated with the disruptions, according to the fourth quarter earnings <a href="https://swamedia.com/releases/release-f30033abc7ead7522c3ea8021c3d5d2d-southwest-airlines-reports-fourth-quarter-and-full-year-2022-results" target="_blank" rel="noopener">report</a>.
“We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events,” Southwest CEO Bob Jordan remarked. “In addition, our Board of Directors has established an Operations Review Committee that is working with the company&#8217;s management to help oversee the company&#8217;s response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023.”
Shares for Southwest fell 4.8% on Thursday morning after the announcement; the company’s stock price has fallen more than 12% since the beginning of December.
Southwest reported positive net income for 2022 despite the losses in the fourth quarter, as well as record fourth quarter and full year operating results of $6.2 billion and $23.8 billion, respectively. The company estimates that the number of available seat miles, a metric used by airlines to estimate capacity for revenue generation, would rise 10% year-over-year in the first quarter of 2023. Jordan added that executives are “encouraged” by current booking trends for the month of March and expect “solid profits” for the year.
Southwest canceled some 16,700 flights between December 21 and December 31, according to a <a href="https://otp.tools.investis.com/clients/us/southwest/SEC/sec-show.aspx?Type=html&amp;FilingId=16303107&amp;CIK=0000092380&amp;Index=10000" target="_blank" rel="noopener">filing</a> submitted to the Securities and Exchange Commission, which added that the overall pre-tax negative <a href="https://www.dailywire.com/news/southwest-reveals-how-much-holiday-flight-meltdown-will-cost-them" target="_blank" rel="noopener">impact</a> from the meltdown would settle between $725 million and $825 million.
Executives have sought to <a href="https://www.dailywire.com/news/southwest-gives-disgruntled-customers-frequent-flyer-points-in-aftermath-of-holiday-meltdown" target="_blank" rel="noopener">recover</a> lost customer trust among the thousands of passengers whose flights were delayed or canceled. At least some received reward points amounting to $300 in value; the company has also vowed to reimburse flyers for meals, hotel accommodations, rental cars, and tickets purchased with other carriers.
Difficulties for the company are likely to continue throughout the year despite expectations for profitability. Members of the Southwest Airlines Pilot Association, the company’s labor union, <a href="https://www.dailywire.com/news/southwest-pilots-announce-they-may-go-on-strike-one-month-after-airlines-nationwide-meltdown" target="_blank" rel="noopener">announced</a> that a strike authorization vote would occur on May 1 in response to the holiday meltdown and an “utter lack of meaningful progress on a contract negotiation.”
“I think it is best to consider what our customers have been through over the past several years and the past several weeks,” Southwest Airlines Pilot Association President Captain Casey Murray said in a <a href="https://www.swapa.org/news/2023/press-release-sav-announcement/" target="_blank" rel="noopener">press release</a>. “It was the lack of discussion or commitment by our leadership team to rectify these issues for our passengers and our pilots that drove us to make the decision to carry forward on this path.”
Regulators such as Transportation Secretary Pete Buttigieg have meanwhile exhorted Southwest to reimburse customers quickly; he <a href="https://www.dailywire.com/news/buttigieg-sends-brutal-letter-to-southwest-ceo-demanding-airline-follow-through-with-reimbursing-travelers" target="_blank" rel="noopener">described</a> the “level of disruption” experienced by passengers as “unacceptable” and warned that his agency would exercise “the fullest extent of its investigative and enforcement powers” to ensure customers are refunded.

US-TRAVEL-SOUTHWEST

Southwest Airlines Reports Massive Revenue Hit After Christmas Meltdown

Southwest Airlines Takes Revenue Hit Following Holiday Meltdown

Stock Market

Members of the <a href="http://dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> Pilot Association introduced the first steps to begin a strike one month after the company canceled thousands of flights during the holiday <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">travel</a> season.
Southwest nixed an elevated number of flights even after severe winter <a href="http://dailywire.com/topic/weather" target="_blank" rel="noopener">weather</a> conditions had subsided in the days after Christmas. The company’s labor union announced that a strike authorization vote will occur on May 1 in response to the holiday meltdown and the “utter lack of meaningful progress on a contract negotiation,” especially with respect to scheduling work rules and information technology requests.
“I think it is best to consider what our customers have been through over the past several years and the past several weeks,” Southwest Airlines Pilot Association President Captain Casey Murray said in a <a href="https://www.swapa.org/news/2023/press-release-sav-announcement/" target="_blank" rel="noopener">press release</a>. “It was the lack of discussion or commitment by our leadership team to rectify these issues for our passengers and our pilots that drove us to make the decision to carry forward on this path afforded to us by the Railway Labor Act.”
The law, passed in 1926 as the nation became increasingly reliant upon railways, allows Congress to exercise its authority over interstate commerce by preventing strikes in the transportation sector. Officials recently <a href="https://www.dailywire.com/news/union-allies-turn-on-pro-labor-biden-for-trying-to-prevent-looming-rail-strike" target="_blank" rel="noopener">used</a> the statute to halt a rail strike.
Shares for Southwest dropped 3.5% on Wednesday after the announcement; the company’s stock price has fallen nearly 9% since the beginning of December.
“We believe that May 1 provides a date that allows our union time to prepare and gives our customers time to book elsewhere, so that they can have confidence that their summer vacations, honeymoons, and family outings are assured,” Murray added. “It is not a decision we have taken lightly, but given the trajectory of our current leadership group, we have little faith in the stability and future of our airline.”
Negotiations between the labor union and Southwest Airlines are scheduled to resume on January 24, according to a <a href="https://swamedia.com/releases/release-f30033abc7ead7522c3ea8021c0e1eff-southwests-statement-on-announcement-by-pilots-union" target="_blank" rel="noopener">press release</a> from the company, which said that the scheduled authorization vote is not expected to impact operations.
Southwest canceled some 16,700 flights between December 21 and December 31, according to a <a href="https://otp.tools.investis.com/clients/us/southwest/SEC/sec-show.aspx?Type=html&amp;FilingId=16303107&amp;CIK=0000092380&amp;Index=10000" target="_blank" rel="noopener">filing</a> submitted to the Securities and Exchange Commission earlier this month. The company <a href="https://www.dailywire.com/news/southwest-reveals-how-much-holiday-flight-meltdown-will-cost-them" target="_blank" rel="noopener">estimated</a> that the number of available seat miles, a metric used in the airline industry to approximate capacity for revenue generation, was 6% lower in the fourth quarter in comparison to the same period in 2019, marking a 4% decrease from previous forecasts. Total losses from the fallout are expected to cost the company between $725 million and $825 million, a sum largely driven by anticipated revenue losses between $400 million and $425 million.
Policymakers such as Transportation Secretary Pete Buttigieg have exhorted Southwest to quickly reimburse customers; he described the “level of disruption” experienced by passengers as “unacceptable” in a recent <a href="https://www.transportation.gov/sites/dot.gov/files/2022-12/Message%20from%20Secretary%20Buttigieg%20to%20Southwest%20Airlines%20CEO%20Bob%20Jordan_12.29.22.pdf" target="_blank" rel="noopener">letter</a> to Southwest CEO Bob Jordan and warned that his agency would exercise “the fullest extent of its investigative and enforcement powers” to ensure customers are refunded. Buttigieg received criticism from lawmakers within the Democratic Party for <a href="https://www.dailywire.com/news/bernie-sanders-ro-khanna-tear-into-pete-buttigieg-over-southwest-airlines-fiasco" target="_blank" rel="noopener">failing</a> to implement new airline industry rules they had previously recommended.

Southwest Pilots Announce They May Go On Strike One Month After Airline’s Nationwide Meltdown

Southwest Pilots May Go On Strike

Labor Unions

<a href="http://dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> estimates that between $725 million and $825 million will be lost in the aftermath of the <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">company</a> canceling thousands of flights during the holiday <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">travel</a> season.
Southwest canceled an elevated number of flights even after severe winter <a href="http://dailywire.com/topic/weather" target="_blank" rel="noopener">weather</a> conditions had subsided in the days after Christmas. The company announced a return to <a href="https://www.dailywire.com/news/southwest-says-it-will-resume-normal-operations-on-friday" target="_blank" rel="noopener">normal operations</a> beginning on December 30 and is currently at parity with other major airlines, which resumed normal operations more quickly than Southwest, according to <a href="https://flightaware.com/live/cancelled/yesterday" target="_blank" rel="noopener">data</a> from FlightAware.
Southwest canceled some 16,700 flights between December 21 and December 31, according to a <a href="https://otp.tools.investis.com/clients/us/southwest/SEC/sec-show.aspx?Type=html&amp;FilingId=16303107&amp;CIK=0000092380&amp;Index=10000" target="_blank" rel="noopener">filing</a> submitted to the Securities and Exchange Commission on Friday. The company estimated that the number of available seat miles, a metric used in the airline industry to approximate capacity for revenue generation, was 6% lower in the fourth quarter in comparison to the same period in 2019, marking a 4% decrease from previous forecasts.
The pre-tax negative impact of $725 million to $825 million is largely driven by anticipated revenue losses between $400 million and $425 million. The remaining loss comes from higher expenses from reimbursements, frequent flyer points distributed as a “gesture of goodwill” to affected customers, and additional employee compensation.
At least some customers whose flights were canceled or delayed for more than three hours received 25,000 reward points, equivalent to approximately $300 in value. “Southwest experienced a unique combination of events that started with severe weather at our busiest airports and transitioned into other operational challenges,” a <a href="https://www.dailywire.com/news/southwest-gives-disgruntled-customers-frequent-flyer-points-in-aftermath-of-holiday-meltdown" target="_blank" rel="noopener">message</a> sent to customers read. “This caused unprecedented wide-scale cancellations and ultimately impacted your trip.”
Share prices for Southwest have fallen more than 7% over the past month as executives scramble to win back the trust of disgruntled customers. Executives in the carrier’s pilot union <a href="https://www.dailywire.com/news/a-meltdown-a-year-for-the-last-five-or-six-years-southwest-pilots-blast-company-over-crisis-that-was-a-decade-in-the-making" target="_blank" rel="noopener">claimed</a> the elevated number of cancelations arose from “a combination of processes, outdated technology, and infrastructure.” Southwest is unique among other major airlines in that flights are arranged in a point-to-point system rather than a hub model.
Southwest had earned record revenue of $6.2 billion in the third quarter and boasted liquidity of $14.7 billion, exceeding debt outstanding of $8.7 billion, according to an earnings <a href="https://www.southwestairlinesinvestorrelations.com/news-and-events/news-releases/2022/10-27-2022-114539343" target="_blank" rel="noopener">report</a>.
Policymakers have called for Southwest to quickly reimburse customers and have weighed reforms in airline regulations. Transportation Secretary Pete Buttigieg characterized the “level of disruption” experienced by Southwest customers “unacceptable” in a recent <a href="https://www.transportation.gov/sites/dot.gov/files/2022-12/Message%20from%20Secretary%20Buttigieg%20to%20Southwest%20Airlines%20CEO%20Bob%20Jordan_12.29.22.pdf" target="_blank" rel="noopener">letter</a> to Southwest CEO Bob Jordan and warned that his agency would exercise “the fullest extent of its investigative and enforcement powers” to ensure customers are refunded.
“While weather can disrupt flight schedules, the thousands of cancellations by Southwest in recent days have not been because of the weather. Other airlines that experienced weather-related cancellations and delays due to the winter storm recovered relatively quickly, unlike Southwest,” the former Democratic presidential candidate wrote. “For many, Southwest’s severe flight disruptions have resulted in missed time with loved ones during the holidays and in being separated for a prolonged period from their luggage even if they never boarded a flight.”
Members of Congress have also taken notice of the cancellations: Sen. Bernie Sanders (I-VT) and Rep. Ro Khanna (D-CA) claimed Buttigieg <a href="https://www.dailywire.com/news/bernie-sanders-ro-khanna-tear-into-pete-buttigieg-over-southwest-airlines-fiasco" target="_blank" rel="noopener">failed</a> to implement new rules for the airline industry they had previously recommended, while Sen. Richard Blumenthal (D-CT) plans to <a href="https://www.dailywire.com/news/lawmaker-calls-for-airline-passenger-bill-of-rights-after-southwest-meltdown" target="_blank" rel="noopener">reintroduce</a> a “bill of rights” for airline customers that would provide various reimbursement guarantees to those impacted by future flight cancelations.

Southwest Reveals How Much Holiday Flight Meltdown Will Cost Them

Southwest Could Lose Over $800 Million From Winter Flight Fiasco

Sen. <a href="http://dailywire.com/topic/richard-blumenthal" target="_blank" rel="noopener">Richard Blumenthal</a> (D-CT) plans to reintroduce legislation creating a “bill of rights” for <a href="http://dailywire.com/topic/air-travel" target="_blank" rel="noopener">airline</a> passengers following the recent logistical meltdown at <a href="http://dailywire.com/topic/southwest-airlines" target="_blank" rel="noopener">Southwest Airlines</a> that left thousands of passengers stranded across the country.
The company nixed roughly two-thirds of flights during the busy Christmas travel season, even after severe winter <a href="http://dailywire.com/topic/weather" target="_blank" rel="noopener">weather</a> conditions had subsided and other carriers had ceased canceling an elevated number of flights. Southwest announced a return to <a href="https://www.dailywire.com/news/southwest-says-it-will-resume-normal-operations-on-friday" target="_blank" rel="noopener">normal operations</a> beginning on December 30; cancelation <a href="https://flightaware.com/live/cancelled/yesterday" target="_blank" rel="noopener">data</a> provided by FlightAware show the company is currently at parity with other major airlines.
Blumenthal is submitting legislation to the new Congress that would provide various reimbursement guarantees to passengers impacted by future flight cancelations. &#8220;The kind of disaster that we saw with Southwest simply dramatizes an ongoing failure by the airlines to respect basic passenger rights,&#8221; the lawmakers said in an <a href="https://www.cbsnews.com/newyork/news/airline-passenger-bill-of-rights/" target="_blank" rel="noopener">interview</a> with CBS. &#8220;Rental cars, hotel, meals, no questions asked, money back.”
Similar <a href="https://www.congress.gov/bill/117th-congress/senate-bill/3222?q=%7B%22search%22%3A%5B%22Airline+Passengers%27+Bill+of+Rights%22%2C%22Airline%22%2C%22Passengers%27%22%2C%22Bill%22%2C%22of%22%2C%22Rights%22%5D%7D&amp;s=1&amp;r=1" target="_blank" rel="noopener">legislation</a> filed by Blumenthal during the last Congress would have granted “protections for airline passengers from being required to involuntarily relinquish their seats,” mandated “training on the rights of passengers” for airline staff, restricted “unreasonable air carrier fees,” and provided “compensation to passengers” for delayed or canceled flights.
Other lawmakers have likewise called for increased regulations on the airline industry following the holiday travel meltdown. Sen. Bernie Sanders (I-VT) and Rep. Ro Khanna (D-CA) cited an <a href="https://www.dailywire.com/news/bernie-sanders-ro-khanna-tear-into-pete-buttigieg-over-southwest-airlines-fiasco" target="_blank" rel="noopener">earlier admonition</a> to Transportation Secretary Pete Buttigieg in which they called for the official to establish rules guaranteeing refunds for passengers impacted by canceled or delayed flights.
“Taxpayers bailed out the airline industry during their time of need,” Sanders wrote. “It is the responsibility of the airline industry and the Department of Transportation to ensure, to the maximum extent possible, that the flying public and crew members are able to get to their destinations on time and without delay.”
Share prices for Southwest have fallen more than 15% over the past month as executives scramble to win back the trust of disaffected customers. Leadership in the company’s pilot union has <a href="https://www.dailywire.com/news/a-meltdown-a-year-for-the-last-five-or-six-years-southwest-pilots-blast-company-over-crisis-that-was-a-decade-in-the-making" target="_blank" rel="noopener">claimed</a> the surge in cancelations was attributable to “a combination of processes, outdated technology, and infrastructure.” The airline is unique among other major carriers because flights are organized by a point-to-point system rather than a hub model.
Southwest CEO Bob Jordan remarked in a recent <a href="https://swamedia.com/releases/release-7e05ea1637937dc7354128bee7c60a1a-ceo-bob-jordan-provides-update-on-taking-care-of-our-customers" target="_blank" rel="noopener">statement</a> that the firm is conducting a “thorough review” of the disruptions. “We&#8217;ve already taken immediate actions to mitigate the risk of this ever happening again, and the review work will inform additional actions and investment as well,” he said. “We&#8217;ve asked our unions to participate in this review effort as well, and likewise we are in regular communication with our Board of Directors.”
Some 54 million passengers planned to depart from airports between December 18 and January 3, marking a 20% increase in holiday travel from last year despite persistent cost pressures and other economic headwinds, according to <a href="https://media.hopper.com/research/christmas-2022-holiday-outlook" target="_blank" rel="noopener">data</a> from Hopper. The snowfall and frigid temperatures also presented obstacles to <a href="https://www.dailywire.com/news/amazon-fedex-post-office-warn-of-delivery-delays-as-winter-weather-persists" target="_blank" rel="noopener">major delivery services</a> as Americans waited for last-minute Christmas presents: FedEx and UPS issued statements warning of delays, while Amazon and the United States Postal Service shuttered multiple locations.

Southwest Airlines Experiences Major Flight Cancellations Across U.S.

Lawmaker Calls For Airline Passenger ‘Bill Of Rights’ After Southwest Meltdown

Airline Passenger 'Bill Of Rights' Introduced By Lawmaker After Southwest Meltdown

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