💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Southwest says recent mechanics' disruption costing millions weekly

Published 03/05/2019, 09:37 AM
© Reuters. Southwest Airlines planes are seen at LAX airport in Los Angeles
BA
-
LUV
-

CHICAGO (Reuters) - Southwest Airlines (NYSE:LUV) Co's Chief Executive Gary Kelly said on Tuesday that the recent disruption caused by its mechanics union is costing the company millions of dollars a week in lost revenues and millions of dollars in additional costs related to flight cancellations and delays.

Southwest and the Aircraft Mechanics Fraternal Association, which represents some 2,400 mechanics at the low-cost carrier, have been in contract negotiations since 2012.

In a lawsuit filed in Texas, Southwest asked a federal judge to order a halt to what it called an unlawful job action by the union.

Separately, Kelly said Southwest could add 500 more Boeing (NYSE:BA) Co 737 aircraft to its fleet as it considers adding new destinations in North and South America in coming years.

Kelly was speaking at a J.P. Morgan conference in New York.

© Reuters. Southwest Airlines planes are seen at LAX airport in Los Angeles

Southwest will soon begin flying to Hawaii from California, as part of the budget-friendly carrier's push to boost leisure travel from the West Coast, an executive said last week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.