Why did Southwest Airlines collapse?

The airline canceled thousands of flights during the holidays and left hundreds of thousands of people across the country looking for new travel plans. Critics say that's because it failed to fund technology needed to match its growth, dating back to Southwest co-founder Herb Kelleher.



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While a massive winter storm caused the initial cancellations, the company's outdated software systems turned what should have been a normal problem into a snowballing disaster that lasted for days after other airlines had resumed their usual operations.

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It wasn't all good news: The lingering impact of massive service problems caused Southwest Airlines to report a first-quarter loss, as the airline warned would happen three months ago. Weak bookings in January and February caused a $325 million hit to revenue in the quarter.

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Based on the latest financial disclosure, Southwest Airlines has a Probability Of Bankruptcy of 1.0%. This is 97.65% lower than that of the Passenger Airlines sector and 97.66% lower than that of the Industrials industry.

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This time it's Southwest, but other airlines have had similar "operational meltdowns" in the past, notes Bangs. In summer 2021, for example, it was Spirit and American. And over Memorial Day this year, it was Delta Air Lines.

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Most major airlines canceled or delayed flights, but Southwest Airlines canceled at least 70% of its flights Monday -- more than 2,600 -- due to a reported system meltdown. The chaos continued Tuesday, with the airline canceling 62% of flights for the day and canceling 62% of flights on Wednesday.

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The good news for Southwest Airlines is that it came back from those crises, and there are several ways it could bounce back from its latest one. But the road to recovery is not likely to be quick or easy and will involve more than resuming normal operations, which the airline said it expects to happen on Friday.

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Southwest Is A Safe Airline
They are a favorite among travelers looking for cheap flights without having to compromise on comfort or security. According to the most recent list of the world's safest airlines, Southwest was ranked in the top 15 airlines in the world in 2021, even beating out Delta, American, and United.

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Southwest is one of the few major U.S.-based carriers to have never had a fatal crash. In 2018, a New Mexico woman was killed when an engine exploded on a Southwest flight after it took off from New York. The blast sent shrapnel through one of the jet's windows, and the victim was partly sucking out of the plane.

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Instead, as travel slowed in 2020, and then as Southwest added new cities in 2021, the airline dropped routes, or point-to-point service. In some cases, it might restore a nonstop flight only to cut it later and shift resources to more in-demand routes.

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Will I get a refund if Southwest cancels my flight? If your flight is cancelled by Southwest and you choose to cancel your trip as a result, you are entitled to a refund upon request for the unused transportation – even for non-refundable tickets.

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Southwest is one of the few major U.S.-based carriers to have never had a fatal crash. In 2018, a New Mexico woman was killed when an engine exploded on a Southwest flight after it took off from New York. The blast sent shrapnel through one of the jet's windows, and the victim was partly sucking out of the plane.

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Southwest happens to be the largest U.S. airline, at least in terms of domestic passengers carried, and yet you won't find it's fares included in your search results. The reason? Southwest prohibits any automatic device, program, or algorithm from monitoring its fares.

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Southwest Airlines Co. operates one of the world's most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 11 countries.

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