A Southwest Airlines executive apologized for the company's holiday season meltdown in front of a panel of senators on Thursday.

The airline company canceled nearly 17,000 flights and stranded more than two million customers between December 21 and December 31 following a winter storm, far more than any other airline. The Senate Commerce Committee questioned executives in a hearing that focused on those disruptions.

"Let me be clear, we messed up," Southwest Chief Operating Officer Andrew Watterson told senators. "I want to sincerely and humbly apologize to those impacted by the disruption,"

"In hindsight, we did not have enough winter operational resiliency," Watterson explained.

The Southwest executive assured the committee that the company has been working to improve its systems.

"We are doing a system-wide review of our preparedness for winter operations and will implement any measures necessary to mitigate the risk of an event like this occurring in the future," Watterson said.

The company has budgeted $1.3 billion for 2023 investments, upgrades, and maintenance of their IT systems.

Democratic Senator Ed Markey, unsatisfied with the executive's explanation, demanded the airline company give a "cash hardship payment" to those affected.

Some Republicans, however, were more sympathetic with the airline company.

"I've had multiple conversations with senior leadership at Southwest. I'm confident they understand it was an epic screw-up and that they are committed to doing everything possible to prevent its recurrence," Sen.Ted Cruz of Texas said.

Watterson testified the airline had reimbursed 273,406 customers, and that every impacted customer had been emailed flyer points, along with an apology.

But, the airline company would not pay customers directly for their inconvenience unless it was "reimbursement of a flight they took in the disruption," Watterson said. 

The U.S. Transportation Department is also investigating Southwest for its flight scheduling throughout the disruption.

Share:
More In Business
White House Unveils $2 Billion Plan to Shore Up U.S. Food Supply Amid Shortages, Food Insecurity
The White House is earmarking $2.1 billion to help secure the nation's food supply, amid widespread shortages due to the pandemic, Russia's war in Ukraine, and rising inflation. The Biden administration's plans are expected to shore up food infrastructure and distribution while also aiding farmers. Bread for the World Senior International Policy Advisor Abiola Afolayan joined Cheddar News' Closing Bell to discuss.
Fed's Quantitative Tightening Begins as Americans Deal With Historically High Inflation
Concerns about economic growth are weighing down sentiment on Wall Street, as investors also monitor the uncertain impact of the Federal Reserve's quantitative tightening - the process of reducing its $9 trillion balance sheet it built up over the course of the pandemic. The Fed's QT is meant to normalize monetary policy while bringing down inflation, something the White House calls a 'top economic priority.' As Americans cope with higher prices for everyday essentials, Treasury Secretary Janet Yellen admitted that she was wrong about inflation being 'transitory,' as extenuating factors have caused inflation from the pandemic to worsen. JPMorgan CEO Jamie Dimon also weighed in on inflation and the state of the economy, warning investors to brace for a so-called economic 'hurricane' due to impacts from inflation and Russia's war in Ukraine. The still-tight job market is putting pressure on the economy as well, as the latest JOLTS report shows job openings in the U.S. are down from record highs but remain high.
Biden, Powell Meet on Economy, Inflation as Americans Grapple With Historically High Prices
President Biden and Federal Reserve chair Jerome Powell meet at the White House today for the first time since Powell's renomination to the position. The President and the Fed Chair discussed the economy and historically high inflation, as new data shows inflation may be cooling slightly. Morning Consult economic analyst Jesse Wheeler joins Cheddar News' Closing Bell to discuss how the Biden administration at the U.S. central bank can work together to combat soaring prices for American consumers.
Stocks Bounce Back as Nasdaq Jumps More Than 2%
Gene Goldman, Chief Investment Officer at Cetera, joins Cheddar News' Closing Bell, where he breaks down the reasons behind Thursday's bounce-back performance on Wall Street. Goldman also provides a dose of investing advice, highlighting the sectors he's favoring right now.
Stocks Close Lower Amid Economic Fears
David Scranton, CEO and Founder of Sound Income Strategies, joins Cheddar News' Closing Bell, where he provides his insight into why markets ended Wednesday's session lower and hones in on what he's looking for when it comes to the Fed combating inflation.
Mint House Raises $35 Million to Transform Hospitality
Tech-enabled residential hospitality company Mint House recently raised $35 million in a Series B round led by Mohari Hospitality. Mint House was described by one of its backers as 'the best of a hotel without the worst of a hotel, and the best of an Airbnb without the worst of an Airbnb.' Mint House offers apartment-style lodging across the country. The company claims its spaces combine the comfort of a home with the luxury of a hotel in order to give guests all of the perks and none of the tradeoffs. Will Lucas, Founder and CEO of Mint House, joins Cheddar News' Closing Bell to discuss.
Microsoft Lowers Q4 Guidance, Citing Unfavorable Foreign Exchange Rate
As the broader tech sector faces continued headwinds, Microsoft in particular is slashing its fourth quarter outlook for another reason: the strength of the dollar. Why is it that a strong dollar is negatively impacting tech giants? And what should investors keep in mind? Tim Lesko, director and senior wealth advisor at Mariner Wealth Advisors, joins Closing Bell to discuss.
Load More