S&P Global Ratings downgrades outlook for Southwest Airlines after Christmas cancellations

S&P Global Ratings said it would revise its outlook on Southwest Airlines from positive to stable due to operational losses incurred over the Christmas holiday. Citing the airline’s admission that it faces a pre-tax “negative impact” of up to US $825 million for the fourth quarter after around 16,700 flights were cancelled between December 21 – 31, S&P said the company will generate weaker funds from operations (FFO) in 2023 compared to previous expectations, which were for a return to pre-pandemic levels. S&P said it was affirming its BBB issuer rating and warned a wider macroeconomic weakening, including a possible