CEO of Southwest Airlines Says This is Costing the Company Millions a Week

According to Southwest Airlines CEO Gary Kelly, maintenance problems are costing the company millions of dollars a week.

The airline has had to cancel hundreds of flights over the maintenance issues. Kelly said that canceled flights and out of service jets as well as a feud with the mechanics’ union is costing millions of dollars per week.

The company sued its mechanics’ union earlier this month over cosmetic issues that had grounded planes.

The Aircraft Mechanics Fraternal Association had stated that its technicians are obligated by law to “protect everyone who steps on that aircraft and there is zero evidence presented of a non-legitimate discrepancy” by the mechanics.

It was on Tuesday that 89 flights with the airline had been canceled according to FlightAware. Compared to competitors, this was a big number. United had only eight cancellations and JetBlue had twelve.

“Customers are harmed. Our employees suffer through reduced profit sharing,” Kelly said at a transportation conference hosted by J.P. Morgan Chase.

Southwest just recently began to sell flights to Hawaii from California.

Disclaimer: We have no position in Southwest Airlines Co. (NYSE: LUV) and have not been compensated for this article