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Southwest (LUV) Grapples With Flight Cancellations & Delays

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Southwest Airlines (LUV - Free Report) canceled hundreds of flights on Wednesday and delayed several more as it continues to face technical issues for the third straight day.

The airline canceled 315 flights on Wednesday, representing about 8% of its scheduled service, and delayed another 562, according to the flight tracking website FlightAware, as reported by Reuters.

Dan Landson, a Southwest spokesperson, said, "While our technology issues from Tuesday have been resolved, we are still experiencing a small number of cancellations and delays across our network as we continue working to resume normal operations."


On Tuesday, the Federal Aviation Administration had briefly grounded Southwest flights so that it could resolve a computer reservation issue. Reuters reported that Southwest canceled about 500 flights on Tuesday while delaying around 1,300.

The technical complications began on Monday when a weather data provider faced an issue, which disrupted the transmission of weather information. This required Southwest to make a ground stop due to safety reasons, leading to 1,500 flights getting delayed.

The flight cancellations and delays during the presumably busy summer travel period might hurt the company’s bookings, which had been seeing a steady rise lately on the back of improved leisure travel demand.

Zacks Rank & Key Picks

Southwest carries a Zacks Rank #3 (Hold). Some other top-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) . While C.H. Robinson and Covenant Logistics sport a Zacks Rank #1 (Strong Buy), Expeditors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 22%, 67% and 72% in a year’s time, respectively.

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