Southwest Airlines intentionally concealed problems with its computer systems that led to thousands of flight cancellations over the holiday travel season, shareholders alleged in a lawsuit filed Tuesday.
argues Southwest has failed multiple times since 2020 to mention financial and operational risks linked to its outdated technology.
In , the company cited the pandemic, weather issues and other outside circumstances as reasons why the company鈥檚 financial success might fluctuate.
But that report and future reports did not fully detail any of Southwest鈥檚 computer scheduling issues, the suit said.
Those alleged shortcomings all came to a head when more than 10,000 flights were canceled around the holiday season. The suit points to the crew scheduling system Sky Solver as a root cause of the widespread delays.
Southwest representatives declined to comment, but Southwest CEO Bob Jordan said challenged those claims.
"There鈥檚 been a little misconception that we have unique or archaic tools or something like that and we don鈥檛,鈥� Jordan said Thursday. 鈥淣ow we鈥檙e going to learn things that we need to do to make the technology better to make the processes better.鈥�
The suit also criticized the airline鈥檚 use of the point-to-point system as opposed to a hub-and-spoke system used by airlines like Delta Airlines. Experts say in severe weather conditions like last month鈥檚 winter storm, not having a central hub for flight crews to return to can result in compounding disruptions.
Lawyers for the plaintiffs did not immediately respond to requests for comment.
Southwest's stock fell from a closing price of $36.09 on Dec. 23 to $32.19 on Dec. 28 鈥� a . The investors are seeking damages for what they argue is negligence by the company.
Southwest has received national criticism for its handling of the December meltdown from customers and government agencies.
In a , Secretary of Transportation Pete Buttigieg demanded the company be held accountable for the holiday disruptions and the inconvenience caused to customers.
Our department will continue to support the traveling public. If your Southwest flight was delayed or canceled, and you are denied compensation for flights not taken or expenses like meals, hotels, and ground transport, please submit a complaint to DOT 鉃★笍
— Secretary Pete Buttigieg (@SecretaryPete)
Buttigieg asked the airline to reimburse passengers for meals, hotels and transportation, asking for a 鈥減rompt update on Southwest鈥檚 efforts to do right by the customers it has wronged.鈥�
The airline it would be working on these reimbursements as well as returning baggage and processing refunds.
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