Southwest Stocks Skidded as Flight Cancellations Piled up

Southwest Stocks Skidded as Flight Cancellations Piled up

On Tuesday, stocks of Southwest Airlines skidded after the carrier cancelled more than 2,000 flights. 

Accordingly, it sharply plummeted 4.17% or 2.25 points to $51.67 per share. 

Southwest is the world’s largest low-cost carrier and one of the major airlines in the United States. 

On Sunday, it canceled 1,019 flights, which is 28.00% of its schedule, after scrubbing 808 flights on Saturday. Then, it postponed 363 flights and delayed 1,240 on Monday. 

The Dallas-based company cited bad weather, air traffic control issues, and staff shortage that caused the meltdown.

Additionally, the most affected destinations are Denver, Baltimore, Dallas Love Field, and Chicago Midway.

The staffing shortage is a recurring problem as it already powered mass cancellations and delays last summer. 

Consequently, Southwest reduced its operating schedules to avoid further disruptions. Last month, the firm explained that it would cut more flights in spring if needed. 

In addition, the airline had difficulty hiring new personnel as the labor market tightened. 

Southwest had a bumpy move this year as the pandemic restrictions heavily weighed down the industry. 

Meanwhile, rival airlines of Southwest have fewer flight cancellations.

For instance, American Airlines reported 66 mainline cancellations, 2.00% of its total Saturday operations.

Subsequently, it improved 0.30% or 0.06 points to $20.13 per share. 

At the same time, United Airlines announced 32 disruptions. It climbed 0.04% or 0.02 points to $49.18 per share. 

Also, Florida-based Spirit Airlines dropped 32 flights, 4.00% of the schedule that day. It edged up 0.04% or 0.01 points to $25.69 per share.  

Then, Delta Air Lines cancelled 3 flights. Conversely, it plummeted 0.44% or 0.19 points to $43.19 per share.

US Stocks Dipped as Southwest Fell 

Meanwhile, the Nasdaq Composite index lost 0.64% or 93.34 points to $14,486.20 per share. 

Similarly, the benchmark Dow Jones Industrial Average tumbled 0.72% or 250.19 points to $34,496.06 per share. 

Likewise, the S&P 500 index curtailed 0.69% to 30.15 points to $4,361.19 per share. 

Correspondingly, the Dow futures decreased 0.42% or 144.00 points and $34,233.00 per share with a net volume of 15,464.00.

Also, the contracts in the S&P reduced 0.48% or 20.75 points to $4,330.00 per share. It holds a net volume of 87,110.00. 

In addition, the Nasdaq futures slipped 0.50% or 75.00 points to $14,626.50 per share. Whereas,  its net volume was 37,990.00.