Low-cost carrier Southwest will see its cost per seat mile rise about 2 percent in the third quarter because of a bum router that blew. Ironic that a router led to so much havoc with the carrier's route map and schedules. Delta, which experienced an unrelated meltdown this week, will take a little longer to estimate the financial impact.
Delta's offer of compensation to passengers will help soften the blow but it must make sure the same thing doesn't happen again. Like all good airline CEOs, Ed Bastian knows when to issue a strategic apology.
There's no great outcry among shareholders for the Southwest board to oust CEO Kelly and COO Van de Ven. Until that happens, the unions are likely shouting into the wind.
Southwest CEO Gary Kelly is dismissing union calls for his ouster but if profits slip, or there is another major tech outage, then the CEO's future will get more interesting.
The network router outage is dealing havoc with Southwest's schedules as crews have found themselves out of position for their next flights.
As United and Delta reported as well, Southwest is seeing softening demand from business travelers. That's not a great sign for the entire travel industry, and not just airlines.
Southwest isn't talking yet about the precise cause of the outage but it has been transitioning its reservations system with the launch of international service over the last year and the airline needs to get its act together.
Budget airlines' strategy of focusing on direct bookings allows them to grab a larger share of web traffic and gain ground in the direct booking wars.
Buying used gives airlines an edge with aircraft makers looking for higher prices on new jets, too. And since airlines finally have some cash in the bank to play around with they have a greater freedom to make deals that are right for them.