(Reuters) – Southwest Airlines Co on Tuesday launched a limited fare sale for select one-way routes, days after the carrier’s massive flight disruptions in December.
The airline said it will offer the fares starting at $49 for certain one-way routes, with travelers required to make the purchase 21 days in advance.
Southwest faced operational chaos during the peak holiday season due to a tech meltdown, forcing the carrier to cancel more than 16,000 flights that stranded passengers and invited scrutiny from the U.S. government.
BofA Global Research on Tuesday cut the price target on the company’s shares by $3 to $42 after the wave of cancellations.
“The bigger near-term risk, in our view, is whether Southwest sees the need to stimulate demand with lower fares in the event customers book ‘away’ to other airlines,” BofA analyst Andrew Didora said, even as he raised price targets of some other U.S. airlines.
(Reporting by Aishwarya Nair in Bengaluru)
