Southwest Airlines Prepare for Revenue drop after Fatal Accident, Bookings down

Southwest Airlines, one of the U.S. major airline companies, has announced that it expects revenue to drop in the second quarter due to a fatal engine failureduring one of its flights in April. Southwest Airlines has seen a bigger decline than expected following the accident. The company expects revenue per mile flown to fall 3 percent during this quarter, which is on the higher end of what the company had expected. They had previously stated they expected sales per mile to fall between 1 percent to 3 percent in April.

The incident causing the bookings drop occurred on April 17 when a passenger, Wells Fargo bank executive Jennifer Riordan, was killed due to a fan blade breaking off of an engine. Shrapnel had shattered the window she was sitting next to, causing her body to be partially sucked out the broken window.

"Approximately one to two points of this estimated decrease is attributable to recent softness in bookings following the Flight 1380 accident," Southwest said.

The company has pulled all of its marketing and promotions following the incident and has launched a fan-blade inspection program that has caused the the cancellation of a large quantity of flights.

This incident is the first since 2009 on an American Airline.

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