Southwest Airlines Co (NYSE: LUV) cancelled roughly 2,000 flights this weekend due to bad weather, air traffic issues, and labour shortage. Shares of the company opened more than 3.0% down on Monday as mass cancellations stranded crew members and ruined travel plans for thousands of customers.
Cramer relates cancellations to the labour shortage
Mad Money host Jim Cramer agreed on CNBC’s “Squawk Box” this morning that the Southwest fiasco could be related to the labour shortage but expressed disappointment in the lack of disclosure from the airline. He said:
The mass cancellations are unacceptable. I don’t like the fact that we don’t have the full story. It’s just not the style that we’re used to from Southwest which is the most forward, tell us everything kind. I want to know what really happened, and they’re not telling us.
Cramer also said that he would much rather buy Delta Air Lines than Southwest at this point.
Dennis Tajer’s remarks on CNBC’s “Squawk Box”
Peer American Airlines also had to cancel flights over the weekend but not nearly as many as Southwest.
American cancelled only 2.0% of its schedule on Saturday versus Southwest that cancelled 28% of its schedule on Sunday. Also on CNBC’s “Squawk Box”, Dennis Tajer of Allied Pilots Association spoke against speculation on social media that employees were to blame for cancellations.
Southwest blamed everything except their management skills. It’s a convergence of failures, and it’s not because the pilots aren’t trying to get the job done.
In a statement on Monday, Southwest Airlines said normal operations were likely to resume this week.
The post Jim Cramer doesn’t want to buy Southwest Airlines stock appeared first on Invezz.
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