Skift Travel News Blog

The CEO of Southwest Airlines issued a statement to customers with new details about actions the company is taking following the debacle in the last week of December. 

The most notable new information that CEO Bob Jordan shared is that the company has created a board committee to review the company’s response during that time, and consultancy Oliver Wyman has been hired to assess the airline’s systems.

The actions are in response to several issues that led to nearly 16,000 cancellations, caused primarily by a lack of investment in back-end technology. Southwest said the incident could cost the company up to $825 million. 

In the short term, the company is working on updating the crew recovery system, enhancing the crew communications tools, and establishing supplemental operational staffing

As Southwest has said, the company plans to spend about $1 billion on tech upgrades. The recent disruption will accelerate those plans, Jordan stated. 

He also stated that, as of the end of last week, nearly all bags have been returned and nearly all refunds and reimbursements have been processed. 

“We fell short of your expectations and the high standards we have of ourselves, and for that we are deeply sorry. It is our steadfast commitment to make the necessary changes to address the issues we faced and to regain your trust and confidence,” Jordan said in the statement.

The company is holding its quarterly earnings call next week, during which executives will likely further discuss the issue.

The U.S. Department of Transportation has said it is investigating the issue, and a group of U.S. senators sent a letter Friday demanding that Jordan answer questions about the incident.

Air travelers in the U.S. now have a one-stop shop when it comes to knowing what airlines will provide them with in the event of a lengthy flight delay or cancellation.

The new Airline Customer Service Dashboard by the Department of Transportation is designed to “ensure the traveling public has easy access” to airline commitments in the event of a disrupted trip, the regulator said Thursday. The commitments, which are largely a list of existing airline policies compiled together in one place, only apply to “controllable” events, or one where the airline is at fault, for example staff shortages.

“Passengers deserve transparency and clarity on what to expect from an airline when there is a cancelation or disruption,” U.S. Transportation Secretary Pete Buttigieg said. “This dashboard collects that information in one place so travelers can easily understand their rights, compare airline practices, and make informed decisions.”

For example, if a travelers flight is delayed more than three hours due to a mechanical problem with the aircraft, the dashboard shows that they are guaranteed a meal voucher on almost all major airlines except Allegiant Air. However, if their flight is cancelled, only American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, and United Airlines will rebook them on another carrier.

“Carriers welcome opportunities to simplify travel policies, clarify existing practices and increase transparency for travelers,” a spokesperson for trade group Airlines for America said.

The new dashboard follows a spike in flight delays and cancellations earlier this year that resulted in a blame game between airlines and authorities. While acknowledging their own staffing issues, airlines have claimed that air traffic control staffing has exacerbated the situation while the DOT has argued that the situation is primarily the fault airlines and weather. Whatever the reason, the regulator has moved to improve airline passenger protections, including a new rule that would guarantee cash refunds.