Southwest Reveals Passenger Death, Engine Inspections to Impact Bookings

Officials from Southwest Airlines expect bookings to take a hit in the second quarter of 2018 due to the investigation of the carrier’s engines following the death of a passenger earlier this month.

According to Reuters.com, Southwest revealed in its quarterly earnings report that the airline believes second-quarter unit revenue will drop by 1-3 percent, with 1-2 percent attributed to a decrease in bookings following the engine explosion.

The carrier believes the loss in bookings will cost the company between $50 million and $100 million, which it partially attributes to pulled advertisements following the first passenger death in the airline’s history.

Southwest revealed it will reintroduce advertising and promotions this week.

Since the death of 43-year-old Jennifer Riordan following the explosion of an engine on April 17, Southwest has been inspecting all CFM56-7B engines in its fleet to ensure a similar incident doesn’t take place again.

Since the Federal Aviation Administration issued an emergency directive calling for the engines to be inspected, the airline has been dealing with flight delays and cancellations, which has further impacted the earnings of the company.

“It remains a somber time for the Southwest Family following the Flight 1380 accident,” Southwest CEO Gary Kelly told Reuters. “We continue to cooperate with the National Transportation Safety Board’s thorough investigation to understand the cause of the accident.”

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