Open:FactSet Forum

Southwest Airlines ESG performance: LUV blames flight disruptions on union mechanics, exacerbating existing labor tension

LUV blames flight disruptions on union mechanics, exacerbating existing labor tension

Over the last month, Southwest’s timely Pulse score fell 34%, driven by a labor controversy (detected by Truvalue’s Spotlight events) involving the company’s mechanics union, Aircraft Mechanics Fraternal Association (AMFA).

In this research brief, we discuss:

  • Escalating labor tensions, which stem from Southwest’s desire to outsource more maintenance work.
  • Accident and safety management and how extensive outsourcing raises concerns on work quality.
  • Short-term margin pressure if Southwest cuts maintenance outsourcing to levels in-line with peers.

Click here to access the research brief now.