Southwest Airlines Co. provided earnings guidance for the fourth quarter of 2022. The company canceled more than 16,700 flights from December 21, 2022, through December 31, 2022.

The company's preliminary estimate of fourth quarter 2022 available seat miles (capacity) is a decline of approximately 6%, as compared with fourth quarter 2019, which is roughly 4 points lower than previous guidance. As a result of the operational disruptions, the company currently expected to report a net loss in fourth quarter 2022, driven by a preliminary estimated fourth quarter 2022 pre-tax negative impact in the range of $725 million to $825 million. A significant portion of this impact is from an estimated revenue loss in the range of $400 million to $425 million.

The remaining impact relates to an estimated net increase in operating expenses, primarily due to estimated travel expense reimbursements to Customers, the estimated value of Rapid Rewards points offered as a gesture of goodwill to Customers that are expected to be redeemed, and premium pay and additional compensation for Employees, which was partially offset by lower fuel and oil and profit sharing expenses.