Southwest Airlines Co said on Tuesday it would upgrade its crew scheduling software and hire more staff in the winter, as the carrier attempts to address problems that had led to large-scale cancellations during the holiday season.
The Dallas-based carrier has come under fire ever since a staffing crisis due to bad weather during the Christmas holidays overwhelmed its crew scheduling software, disrupting travel plans for two million customers.
The three-part plan was developed by the airline with inputs from aviation consultancy Oliver Wyman, which was hired to investigate the disruption.
The plan looks at bolstering operations during the winter season, when chances of weather-related disruptions to travel-related services are high.
"Work is well underway in implementing action items to prepare for next winter - with some items already completed," Chief Executive Officer Bob Jordan said ahead of a presentation at a J.P. Morgan Chase Conference.
The airline will also beef up its infrastructure to better handle call volumes from customers, Jordan added.
However, the investments in technology, which will total more than $1.3 billion this year, and expenses related to mass cancellations are set to pressure costs in the near term.
Southwest said it was expecting first-quarter expenses, excluding fuel, to rise 5.5% to 6.5%, up from its prior projections of a 2% to 4% increase. It kept its forecast for a loss.
The airline also expects to take delivery of about 90 Boeing Co 737 MAX 8 jets in 2023, compared with its previous forecast of about 100 jets, as supply disruptions hit output at the planemaker.
Shares of Southwest rose as much as 1.7% in premarket trade.
Source: Reuters
Image: Southwest Airlines
