Southwest Airlines said a fatal accident in April cost the airline $ 100 million worth of business.
The Dallas-based airline reported strong second-quarter earnings Thursday, but it found that the company still feels the impact of the 1
"I am particularly proud of the heroic efforts of our people to meet and overcome the challenges of the accident," said CEO Gary Kelly in a statement.
He added that the financial impact of the April 17 accident will subside in the third quarter, with revenue for each seat increasing by 1%. After the incident, it had dropped by 3%.
Southwest said in June that it expected the accident to have a major impact on its bookings because it advertised. But the airline said that the current bookings are expected to recover and will be a "significant improvement" over the second quarter.
Similar to other airlines, soaring fuel costs hurt Southwest (. It said it will slow down expansion plans and capacity. Nevertheless, it will continue its expansion into Hawaii and sell tickets later this year. )
Southwest shares fell 20% this year.
CNNMoney (New York) First published on July 26, 2018: 7:49 pm ET