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Banning TikTok, Lessons from Southwest’s Meltdown

After Hours

CHAPTER

Will People Go Back to Flying Southwest?

I think they'll go back, but it seems that there has been a real breach of trust. Employees have now been telling reporters that they begged senior leaders for years to update the software system. I think it'll take them a while to recover. If you look at Southwest profitability in the last quarter, which is a great quarter for travel overall, the return on investor capital was not quite 5%. That's still below their cost of capital. There's cash on the balance sheet. You have to go back all the way to 2018 or so when they are much more profitable than other carriers.

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