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Tuesday, March 2, 2021

Southwest outage, cancelled flights cost an estimated $54M

DALLAS (AP) — The cancellation of more than 2,000 Southwest Airlines flights due to a computer outage last month will cost the carrier an estimated $54 million.

The Dallas Morning News (http://bit.ly/2aV2tcm ) reported the lost revenue and increased cost estimates based on a Southwest investor advisory released Wednesday.

Dallas-based Southwest blamed a router failure for the July 20 outage and subsequent days of delays.

While Southwest didn’t provide a specific cost of the outage, the company said it would lead to a 0.5 percentage point drop in unit revenues during the third quarter and that it expects its cost per seat mile to rise by up to 2 percent. The newspaper based its estimate on those projections.

An unrelated computer outage this week has resulted in the cancellation of more than 2,100 Delta Air Lines flights.

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