Southwest Airlines explosion can freeze next bookings

April 27, 2018 - By Max Morgan

Southwest Airlines explosion can freeze next bookings

Southwest Airlines Company has warned publicity this Thursday that explosion of one of their engines which happened only a week ago will have its negative impact in the bookings during the second quarter.

Meanwhile, investigation of this incident is in the progress. Specialists are trying to analyze all previous events and possible decisions of the company that could led to the death of the passenger. It is the first mortal case in the history of this airline.

According to the previous forecasts from the company, revenue in the second financial quarter can go down by 1-3 percent. After explosion of engine and death of a passenger, airlines expect to see up to 2 percent decrease in the fly bookings. Southwest expects to see a loss in revenue from 50 to 100 million dollars.

They have confirmed that after the incident, sales of tickets went down. They still will renovate advertising work and add more promotions during the next week, trying to wing war of prices with the rivals.

Stocks of the company from Dallas have finally recouped its first losses but still were 1.18 percent down. This year, shares of Southwest went 18.52 percent low.

Its first quarter profit is equal to the 438 million dollars. While analysts predicted 74 cents maximum per share, it received 75 cents per share in total counting.

Costs of the unit went 0.1 percent up in a year. Despite the tragedy, airlines officials expect to see up to 2 percent increase in the costs of unit, excluding different small items and fuel costs.

 

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