From: Sam | 2/20/2024 11:18:58 AM | | | | American Airlines Bumps Up Baggage Fees -- WSJ Dow Jones Newswires February 20, 2024 10:01:00 AM ET
A much-hated airline fee is starting to creep up again.
American Airlines will now charge $40 to check a bag at the airport for domestic flights or $35 for those who pay in advance online. Previously, the airline charged $30 for the first checked bag. A second bag will now cost $45, up from $40.
The price increase follows similar bumps at other airlines. Alaska Airlines raised the charge by $5 early this year to $35 for a first checked bag and $45 for a second. JetBlue Airways this month started charging $45 to check a bag at the airport, with a $10 discount for paying in advance.
Scott Chandler, American's senior vice president of revenue management and loyalty, said Tuesday that the fee increase was driven by inflation as airlines have been battling rising costs for fuel and labor.
"Fuel is a big component -- obviously the more bags we carry, the more fuel you're burning," he said in an interview. "The cost of handling bags across the board, from real estate, machinery, et cetera, has gone up. This is trying to match that," he said.
On American Airlines flights between the U.S. and Canada and Mexico, a first bag will cost $35 and a second will cost $45 regardless of whether they are purchased at the airport or in advance.
Airlines have done away with some pesky charges, like flight-change fees. But other charges for things such as better seats have proliferated, and airlines often rely on fees to offset rising costs.
While airline ticket prices have been volatile in recent years, surging in 2022 and then easing off last year, luggage fees have been relatively stable. American and other airlines last raised bag fees in 2018 -- to $30 for a first bag and $40 for a second. JetBlue and United Airlines in 2020 raised the fees for checking bags at the airport by $5 but allowed passengers to avoid the increase by paying in advance.
JetBlue said it boosted bag fees most recently to battle rising costs of wages, fuel and other inflationary pressures while keeping base fares low and avoiding charges for popular services like Wi-Fi.
"While we don't like increasing fees, it's one step we are taking to get our company back to profitability and cover the increased costs of transporting bags," a JetBlue spokesman said.
Charging for luggage started as a page in the budget airline playbook over 15 years ago. But most bigger airlines, which once included bags in the price of a ticket, quickly embraced the idea as they sought to tap in to new sources of revenue and offset expenses. Those fees have stuck around even as costs have ebbed and flowed.
In 2022, U.S. airlines brought in nearly $7 billion from checked-bag fees, 17% more than in 2019, before the Covid- 19 pandemic. Last year's figure was on track to outpace that, with nearly $5.5 billion in revenue from checked-bag fees in the first three quarters of the year. Southwest Airlines has stuck to its policy of allowing two free checked bags.
The rising fees can also help steer travelers into airline loyalty programs or toward pricier premium tickets that still include baggage fees. At American, for example, customers with the airline's co-branded credit card or who have status will still receive complimentary bags, as will those who buy seats in premium cabins.
Chandler said less than half of American's customers check bags, and most don't pay for them. One reason: The airline has been adding bigger bins to its planes that can accommodate more carry-ons.
The carrier on Tuesday also said it is lowering fees for some oversize items that are just a few pounds heavier or a few inches larger than standard bags. Previously, items anywhere between 50 and 70 pounds could be subject to a $100 to $200 fee, often setting off panicked scenes at check-in counters. Starting in April, items that come in up to 3 pounds overweight will only cost an additional $30.
American has been trying to drive more customers to its website, where bookings tend to be more profitable for the airline. It said Tuesday that starting in May, customers will only earn miles and loyalty points when they book directly with American, unless they are under a corporate contract or booking using a preferred travel agency.
Write to Alison Sider at alison.sider@wsj.com |
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From: John Koligman | 3/12/2024 12:32:53 PM | | | | Southwest is getting screwed here. NOT a good idea to be totally dependent on one aircraft produced by one vendor.
Southwest Airlines cuts capacity, and rethinks 2024 financial forecast, citing Boeing problems PUBLISHED TUE, MAR 12 20247:17 AM EDTUPDATED 2 HOURS AGO
Leslie Josephs @LESLIEJOSEPHS
KEY POINTS
- Southwest said it would reevaluate its 2024 financial forecast because of Boeing’s delivery delays this year.
- Airline CEOs have been frustrated by repeated setbacks at Boeing that have delayed deliveries of new planes.
- Boeing is facing a quality control crisis in the wake of a blown fuselage panel on an Alaska Airlines flight earlier this year.
Boeing 737 MAX airplanes are seen parked at a Boeing facility on August 13, 2019 in Renton, Washington. David Ryder | Getty Images
Southwest Airlines said Tuesday that it will have to trim its capacity plans and reevaluate its financial forecasts for the year, citing delivery delays from Boeing, its sole supplier of airplanes.
The Dallas-based airline said Boeing informed Southwest’s leaders that it should expect 46 Boeing 737 Max 8 planes this year, down from 58. Southwest had expected Boeing to deliver 79 Max planes, including some of the smallest model, the Max 7, which hasn’t yet won certification from the Federal Aviation Administration.
Because of the delays, Southwest said in a filing that it is “reevaluating all prior full year 2024 guidance, including the expectation for capital spending.”
Southwest’s statements, ahead of a JPMorgan industry conference on Tuesday, are the latest sign of how Boeing’s quality control crisis and production problems — both before and after a door plug blew out of an Alaska Airlines flight in January — are weighing on some of its best customers.
“We all need Boeing to be better,” Southwest CEO Bob Jordan said at the conference.
Alaska Airlines said in a filing Tuesday that its 2024 capacity is “in flux due to uncertainty around the timing of aircraft deliveries as a result of increased Federal Aviation Administration and Department of Justice scrutiny on Boeing and its operations.”
Last week, United told staff that it would have to pause pilot hiring this spring because of late-arriving aircraft from Boeing, CNBC reported. Southwest said it has stopped hiring pilots, flight attendants and other employees this yearand expects to end 2024 with lower headcount than last year.
Southwest shares were down more than 12% in morning trading. The airline said leisure bookings in the first quarter were weaker than expected and forecast unit revenue to be flat to up no more than 2% compared with a year earlier, down from a January estimate of a rise of as much as 4.5%.
Boeing didn’t immediately respond to a request for comment. |
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From: Sam | 4/24/2024 12:27:32 PM | | | | DOT forcing airlines to give full refunds for canceled and delayed flights
Apr. 24, 2024 12:09 PM ET
By: Amy Thielen, SA News Editor
Airline stocks are under pressure after a new Department of Transportation rule will require passengers to receive a full refund for canceled, delayed, or changed flights.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement.
Passengers are now entitled to cash if they refuse other accommodations for a flight that has been canceled or “significantly changed.” This includes flights in which the departure or arrival times are three or more hours different than scheduled for domestic flights or six hours for international flights. The new rule also applies to situations where the airport is changed, or connections have been added.
Passengers are also entitled to a refund of their checked bag fee if their baggage is delayed by 12 hours after a domestic flight or 15-30 hours of an international flight arriving at the gate.
continues at seekingalpha.com |
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From: John Koligman | 5/29/2024 12:54:55 PM | | | | American shares tumble 15% after sales strategy backfires; carrier cuts growth PUBLISHED WED, MAY 29 20249:44 AM EDTUPDATED 11 MIN AGO
KEY POINTS
- American Airlines will slash its capacity growth in the second half of the year and consider a host of other changes to its operations, CEO Robert Isom said.
- The carrier cut its revenue and profit forecast and is parting ways with Chief Commercial Officer Vasu Raja.
- Pressure has been mounting on American’s leadership team after more upbeat results from rivals Delta and United.
An American Airlines’ Embraer E175LR (front), an American Airlines’ Boeing 737 (C) and an American Airlines’ Boeing 737 are seen parked at LaGuardia Airport in Queens, New York on May 24, 2024. Charly Triballeau | AFP | Getty Images
American Airlines will slash its capacity growth in the second half of the year and consider a host of other changes to a sales strategy that backfired, CEO Robert Isom said Wednesday. The comments come a day after the carrier cut its revenue and profit forecast and said it is parting ways with its chief commercial officer, Vasu Raja.
American will grow capacity about 3.5% in the second half of the year compared with the year earlier, down from roughly 8% year-over-year growth in the first six months of 2024.
The company’s shares tumbled 15% on Wednesday while investors weighed the airline’s missteps as the peak travel season gets underway, with some analysts questioning how American can capitalize on what rivals expect to be a record summer.
Isom said American is weighing changes to a plan Raja led to drive direct bookings at the airline in lieu of third-party sites and travel agencies, a strategy that included gutting the airline’s sales department.
The changes angered some travel agencies who weren’t able to access some of the carrier’s fares as before, making it harder for them to sell tickets on American flights.
The chief commercial officer will leave the company next month.
“We’ve used a lot of sticks. We’ve got to put some more carrots in place and make sure that our product is available wherever customers want to buy it,” Isom said at the Bernstein Strategic Decisions conference on Wednesday.
American in February said it would limit some travel agency bookings from being eligible to earn AAdvantage frequent flyer miles. Isom said Wednesday that the airline would reverse that decision.
“That’s off,” Isom said. “We’re not doing that because it would create confusion and disruption for our end customer.”
Corporate bookings Raja said last month American’s corporate booking growth was coming in behind big rivals Delta and United.
Corporate bookings are particularly lucrative for airlines especially when those travelers book at the last minute when fares are at their highest — so called close-in bookings. Airlines had struggled during the pandemic and shortly afterward when business travel was slow to return, but carriers have seen improvement lately.
“The weakness that you’ve seen in American is, I do believe, something that speaks to close-in bookings, the highest premium customers that, unfortunately, we haven’t made ourselves as available and easy to work with as we can,” Isom said.
On an earnings call last month, Raja said American’s corporate bookings were up mid-to-high single-digit percentage points in the first quarter compared with increases of around 14% touted by Delta and United.
“A significant miss driven in part by close in bookings puts AAL’s ability to reap the full value of a robust summer flying season in greater doubt,” Bernstein airline analyst David Vernon said in a note.
Revenue shortfalls After the market closed Tuesday, American said its unit revenues could fall as much as 6% in the second quarter from a year earlier, down from its forecast last month of a no-more-than-3% decline. Airlines make the bulk of their money during the second and third quarters, but some areas have fared better than others.
Isom admitted Wednesday that the company has logged softer bookings than it expected and noted a supply and demand “imbalance” that has prompted carriers to discount tickets. He said industry capacity should come down in the second half of the year, while it slows its own growth.
United, minutes after American’s forecast adjustment Tuesday, reiterated its second-quarter earnings estimates, though it didn’t provide a revenue outlook.
“American’s diminished guide speaks far more to its flawed initial forecast than any broad-based shift in passenger demand,” JPMorgan airline analyst Jamie Baker said in a note Wednesday, adding United’s reiterated forecast was an encouraging sign for Delta.
American has also been prioritizing Sun Belt cities and its large hubs in Texas and North Carolina over coastal markets.
The Transportation Security Administration screened the most people ever over Memorial Day weekend, and executives from United and Delta have predicted a record summer, with very strong trans-Atlantic bookings. |
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From: Sam | 6/15/2024 12:04:33 AM | | | | Southwest Changed Flying. Now It Can't Change Fast Enough. -- WSJ | |
Dow Jones Newswires June 14, 2024 09:00:00 PM ET
Southwest Airlines' headquarters is a monument to its history.
Herb Kelleher's office has been painstakingly reassembled behind glass for employees to view, down to the tape dispenser on his desk and the ashtrays on his coffee table. Press a button in another corner of the building and you can hear a recording of the legendary laugh of Kelleher, the airline's co-founder and former chief executive, who died in 2019.
Thousands of photos, news clippings, old advertisements and other memorabilia line the hallway walls of the airline's Dallas offices. Models of Boeing 737 jets decked out in Southwest colors hang from the lobby ceiling.
Elliott Investment Management, the influential New York hedge fund, says Southwest is stuck in the past. The activist investor says it has amassed a $1.9 billion stake, which amounts to an approximately 11% economic interest in the airline, making it one of Southwest's biggest shareholders -- and its most vocal critics. This past week it demanded Southwest oust its CEO, overhaul the board, and consider shaking up its business model.
Southwest became the biggest U.S. airline by domestic passengers by doing things its own way. Trouble is, that's no longer working so well.
Expenses have ballooned and profit margins lag behind some rivals'. The airline is on track to receive only a quarter of the new jets it was expecting this year from Boeing, leading to bloated overhead. It is backtracking on pieces of an aggressive expansion strategy at a time when Americans are booking more flights than ever.
For decades, Southwest and its unflinchingly loyal base of fliers and employees were the envy of the U.S. aviation industry. The plucky, innovative airline spawned legions of copycats mimicking its simple operation, inspired business- school case studies, and generated industry-leading profit margins.
Southwest is so serious about improving its finances the airline is contemplating radical changes to its hallmarks. It is studying whether to start assigning seats, shake up boarding or offer some rows with extra legroom for a fee to widen its appeal. It has started putting its fares in Google Flights, an airfare search site it long avoided because it preferred that customers book trips on its own website or app.
Sacrificing attributes that helped make Southwest a fan favorite, like free checked bags, is a no-go for now.
"You cannot be stubborn about change," CEO Bob Jordan said Wednesday at an industry event. "At the same time, we're going to stick to our values."
Elliott is a formidable opponent. The hedge fund founded in 1977 by billionaire investor Paul Singer is one of the biggest and busiest activist investors, and its campaigns can turn rancorous.
It is known for never going into an investment without having several ways to win and for forcing changes that include management shake-ups or outright sales. The hedge fund waged a 15-year crusade to get the nation of Argentina to make payments on defaulted sovereign debt, and won in a massively lucrative bet. Several companies in which Elliott has recently built positions have ultimately replaced their CEOs, including the big wireless-tower owner Crown Castle, NRG Energy and Goodyear Tire & Rubber.
Some activists avoid airlines because regulators and unions have hefty influence over company operations, making them especially unpredictable investments. But billionaire investor Carl Icahn struck a deal for two seats on JetBlue Airways's board after unveiling a big stake earlier this year.
Southwest finds itself in a new, uncomfortable position: trying to win over fliers who don't get what's so great about it. Fares aren't always cheapest, and Southwest's cabins lack in-flight amenities that travelers have come to expect, such as seat-back entertainment and extra-legroom options. It only recently began adding power outlets and upgrading Wi-Fi to higher speeds.
Mitch Berk, a salesman who lives in Belleair, Fla., became a big Southwest fan when he lived near its hub at Baltimore/Washington International Airport. He loved the nonstop flights and earned the airline's coveted companion pass for his frequent travels.
Today, he picks discounter Allegiant over Southwest on some business trips because Southwest has cut back on nonstop options.
Berk wishes Southwest would assign seats to make boarding less chaotic -- a suggestion he says he offered on a survey from the airline after a recent flight to New Orleans.
"I know the open seating was intended to turn the plane around faster," he says, "but I don't think that's benefiting them anymore."
Some investors are growing impatient. Shares are down nearly 24% over the last two years, while United Airlines is up 34% and Delta Air Lines is up 55% over that time.
The Artisan Partners Global Value Team, whose clients hold about 1.8% of Southwest shares, has raised its own concerns about the airline's performance and management with Southwest's board chairman since the start of this year, said Dan O'Keefe, lead portfolio manager. The investment firm also wants Jordan fired.
"Southwest's rigid commitment to an approach developed decades ago has inhibited its ability to compete in the modern airline industry," Elliott wrote in a letter to the airline's board this past Monday.
'No-frills' flying
In its early days, Southwest wasn't particularly interested in how other airlines had done things. Kelleher wore a bag over his head in a 1980s commercial, after a rival airline executive suggested travelers should be embarrassed to fly no-frills Southwest.
The strategy worked. Southwest grew fast and kept costs lower than anyone else. It posted profits for 47 straight years until the Covid-19 pandemic in 2020 -- an unparalleled streak in a notoriously boom-and-bust industry. Corporate restructurings grew so common that Kelleher once described bankruptcy court as a "health spa" for airlines. Southwest has never filed.
Southwest's entry into a city would send rivals into a tizzy. The discounter swiped customers from competitors by undercutting their fares, and found new ones by offering nonstop routes that others didn't and tempting travelers to ditch road trips.
Employees, known internally as "Cohearts," were encouraged to think of Southwest like a family, and its irreverent work-hard, play-hard culture engendered fierce loyalty. New hires receive a standing ovation from employees who line the hallways at company headquarters. Flight attendants ad lib during onboard announcements.
"I got to where I stopped questioning them, because their results were so much better than anybody else's," said Doug Parker, the former American Airlines CEO who went head-to-head against Southwest for years.
But cracks have emerged. A late-2022 meltdown resulted in nearly 17,000 canceled flights, tarnishing the airline's reputation.
The airline has stumbled in trying to repeat its playbook of aggressive expansion into new markets, including Cozumel, Mexico, and Syracuse, N.Y.
Southwest's lenient policies on flight changes represented a key advantage that eroded when rivals eliminated most ticket-change fees during the pandemic.
Elliott's Sunday-afternoon call
Elliott spent about 18 months studying the industry and Southwest. It came to see Southwest as the ultimate airline fixer-upper: a floundering company with good bones, including a storied brand and a sterling balance sheet.
The hedge fund thinks fresh blood is key to a turnaround, and is pushing to replace some board members and executives. Elliott hired a recruiting firm to scout candidates, people familiar with the matter said. The new personnel would review the airline's operating strategy with an eye on cutting costs, improving technology, and boosting revenue.
Elliott isn't aiming to impose specific policies or transform Southwest into a legacy airline, according to people familiar with its thinking.
Elliott approached the airline this past Sunday afternoon. It held a brief call with Southwest Executive Chairman Gary Kelly and Jordan, the airline's CEO.
The next day, it made public a letter to the company's board and a presentation in which it criticized leaders for not embracing potential revenue boosters, like the fees other airlines charge for checking bags and reserving seats.
The airline had been preparing for a potential attack: It had already hired advisers at Bank of America and law firm Vinson & Elkins, according to people familiar with the matter. David Hess, who sits on Southwest's board, has also offered guidance. Hess has faced Elliott before: he was appointed a director of Arconic while the parts maker was in the midst of a tough fight with the hedge fund, and served as Arconic's interim CEO after its top executive was ousted.
The airline has sought to project calm. Jordan told employees in a memo Monday that it's "not at all unusual" for shareholders to comment on corporate strategy, and that the airline would engage as it does with any other investor. He has no plans to resign, he told reporters at an event in Washington, D.C., on Wednesday.
"Elliott is not directing the company," he said, adding that the hedge fund's presentation was "fairly light" on specifics it would like to change. Some ideas Elliott mentioned in its presentation are things Southwest is already looking at, the CEO said. The airline is planning to unveil its own plans at an investor day in September.
Some investors, analysts and industry observers think that bringing in an outsider to run the company would be a disaster, and that it makes sense for Southwest to be cautious about changing its offerings.
The activists are "dismissing something really important: the culture," Parker said. "Bringing in someone from outside ends it. You break the chain. It's done."
Beyond fares |
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From: Sam | 7/11/2024 8:41:41 AM | | | | Delta Air Lines Q2 Earnings: EPS Miss, Revenue Beat, Underwhelming Q3 EPS Outlook And More BENZINGA 7:54 AM ET 7/11/2024 Symbol Last Price Change DAL | 46.86 | 0 (0%) | QUOTES AS OF 04:10:00 PM ET 07/10/2024 | [mynote: pre-market, the stock is around 42.70]
Delta Air Lines, Inc. (DAL) shares are trading lower by ~9% premarket on Thursday following the release of its second-quarter 2024 results.
Delta reported second-quarter 2024 operating revenue growth of 7% year-over-year to $16.658 billion, beating the consensus of $15.452 billion. Adjusted operating revenue was $15.407 billion (+5.4% YoY).
Adjusted average fuel price of $2.64 per gallon, up 5% from last year’s quarter. Adjusted EPS was $2.36, missing the consensus of $2.37.
Total passenger revenue was $13.841 billion, a 5% increase YoY; Cargo revenue grew 16% YoY to $199 million, and Other revenue was $2.618 billion (+19% YoY).
Delta recorded an adjusted operating income of $2.269 billion, compared to $2.494 billion YoY, with an adjusted operating margin of 14.7%, down ~230 bps.
“Diverse revenue streams, including premium and loyalty, contributed higher growth and margins, underpinning Delta’s industry-leading financial performance and increasing our financial durability,” commented Glen Hauenstein, Delta’s president.
“We expect September quarter capacity growth of 5 to 6 percent and revenue growth of 2 to 4 percent, with sequential improvement in unit revenue trends through the quarter,” added Hauenstein.
Adjusted operating expenses increased by 8% YoY to $13.138 billion, and non-fuel costs were $9.808 billion (+9% Y/Y) for the quarter.
Delta generated an adjusted operating cash flow of $2.458 billion (-7% YoY). Adjusted net debt at quarter-end decreased ~3% Y/Y to $19.17 billion. Adjusted debt to EBITDAR of 2.8x, down from 3.0x at the end of 2023.
Total revenue per available seat mile decreased by 1% year over year. The passenger load factor was 87% vs. 88% in the second quarter of 2023.
DAL’s Air Traffic Liability ended the quarter at $9.4 billion, up $2.4 billion compared to the end of 2023.
“Growth continues to normalize and our teams are consistently running a great operation, enabling us to deliver efficiency. In the September quarter, we expect non-fuel unit costs to increase 1 to 2 percent year-over-year as capacity growth moderates,” commented Dan Janki, Delta’s chief financial officer.
“Debt reduction remains our top financial priority and we are progressing toward investment grade ratings, with gross leverage improving to 2.8x at the end of the first half,” added Janki.
Third-quarter 2024 Outlook: On a non-GAAP basis, Delta expects revenue growth of 2%-4%, EPS of $1.70 – $2.00 versus $2.06 consensus, and an operating margin of 11%-13%.
Reiterates 2024 Outlook: On a non-GAAP basis, DAL expects EPS of $6.00 – $7.00 versus the $6.58 consensus, free cash flow of $3 billion-$4 billion, and Adjusted Debt to EBITDAR of 2x – 3x.
Also Read: U.S. Airlines To Take Flight In Q2: Analyst Predicts Strong Results, 10% Operating Margin
Price Action: DAL shares are trading lower by 8.54% at $42.86 premarket at the last check Thursday. |
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From: Sam | 7/23/2024 6:06:28 PM | | | | FAA Launches Audit of Southwest Airlines After Close Calls -- 2nd Update |
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| Dow Jones Newswires July 23, 2024 03:46:00 PM ET
U.S. air-safety regulators are launching a broad review of Southwest Airlines after a string of recent close calls and other incidents.
The Dallas-based airline has had a number of potential safety incidents in recent months, including flights that descended to low altitudes too early and a flight that took off from a closed runway.
Southwest acknowledged the Federal Aviation Administration's audit and said it has been working closely with the agency in reviewing recent episodes. The airline said it had already formed a team of experts and leaders from the airline, its unions and the FAA to take a close look at its safety system.
"This group is tasked with performing an in-depth, data-driven analysis to identify any opportunities for improvement. Nothing is more important to Southwest than the safety of our customers and employees," the airline said.
The FAA said it has increased oversight of Southwest to ensure it is complying with federal safety regulations, and that the timeline of the review will be driven by safety.
Southwest's most recent incident came earlier this month: A July 14 flight descended to as low as 150 feet over Florida'sTampa Bay -- miles from the runway, according to data from Flightradar24. An air-traffic controller alerted the pilots and they discontinued their planned approach to Tampa and diverted to Fort Lauderdale.
The FAA has opened investigations into individual instances, but the audit will go further, assessing Southwest's operations more broadly.
The audit is expected to be completed within three months, according to a government official and a person briefed on the matter. It is expected to focus on pilot training, various types of approaches for landing, and maintenance procedures related to opening and removing engine covers and panels, they said.
The review will also delve into the local FAA office that oversees Southwest, the government official said, and as part of its ramped-up scrutiny, the FAA is expected to assign a safety issue analysis team to examine Southwest's practices over a longer period.
Southwest's pilots union told members Tuesday that the FAA's Safety Analysis and Promotion Division intends to perform an in-depth examination of the airline's operations, covering everything from manuals to training and line operations.
"Expect increased scrutiny on ground events and safety, training on abnormals, turbulence safety, and aircraft maintenance," the union said in a message to Southwest pilots Tuesday.
United Airlines faced similar federal scrutiny earlier this year after its own operational mishaps. In March, one of the airline's 25-year-old jets was found to be missing a panel after landing, and another plane lost a wheel during takeoff in a separate incident that month.
At Southwest, a flight in June took off from a closed runway in Portland, Maine, after pilots overlooked a notice about the runway's status, according to the National Transportation Safety Board. Another flight that month descended to a very low altitude several miles away from an airport in Oklahoma City.
In April, a Southwest flight plunged within about 400 feet of the ocean near Hawaii in a mishap while the pilots attempted to redo a landing in bad weather. Another flight in March veered off course during an attempted landing in poor conditions and came within 800 feet of the air-traffic control tower at LaGuardia Airport in New York. There have been two Southwest flights that lost engine covers that were left unlatched.
Southwest's vice president of flight operations, Lee Kinnebrew, in May wrote to employees that the airline was examining whether there was a disconnect between its procedures, training and performance. He added that the airline was conducting focus groups in some bases to determine whether there were ways to improve and guard against complacency and distractions.
"We have more Captains and First Officers in new seats than ever before. We're adapting to an increasingly complex network with new tools and systems," Kinnebrew wrote.
Write to Alison Sider at alison.sider@wsj.com and Andrew Tangel at andrew.tangel@wsj.com
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