Internet Outage Brings Southwest Flights to a Halt as Airline Faces More Turbulence at the Top

The skies have hardly been smooth for Southwest Airlines. A widespread internet outage crippled its dispatching and operations system on Thursday, grounding approximately 1,800 flights and stranding passengers—adding fresh turbulence to the airline's leadership shake-up and strategic overhaul.

Just as the carrier navigates a leadership transition, the outage left countless passengers stranded, adding another layer of complexity to an already challenging period for the airline. By mid-afternoon, Southwest confirmed that the dispatch system was back online and departures had resumed.

Nearly 1,800 Flights Delayed Nationwide

Data reports indicate that almost 40 per cent of Southwest's domestic flights were delayed due to the outage, resulting in more than 1,800 disruptions across its network. Flight boards displayed both original and revised times, reflecting the scale of the operational breakdown.

Southwest Explains System Failure

'Southwest Airlines temporarily paused departures this afternoon due to a brief internet outage that affected the airline's dispatching and operations system. The system has been restored and departures are resuming. We apologise to our Customers for any inconvenience. Nothing is more important to Southwest than the Safety of our Customers and Employees,' read the airline's statement.

Some passengers were already on their planes when the internet went down, resulting in a complete halt to all departures.

'We were about to take off, and it was delayed. We were told to stay on the plane for a little while. And then they asked us all to leave, get off the plane,' said Amy Webber, a passenger.

The airport boards didn't simply show flights as delayed; instead, they displayed both the original and new departure and arrival times. Some flights faced delays of two hours or more.

'I am headed to Cleveland and the notification I got from Southwest was through text message, and it was that my flight was delayed about an hour,' explained another passenger, Robbie Kohart.

Widespread Delays, System Restored

Nearly 40% of Southwest Airlines' flights nationwide experienced delays. The good news is, according to a WOAI report, the system is now working again, and flight departures have restarted. While operational glitches cause immediate disruption, Southwest Airlines has also been navigating significant shifts at its highest levels, including a recent change in its chairmanship.

Leadership Change Rocks Southwest

Southwest Airlines announced that Rakesh Gangwal is stepping down as chairman, just eight months into his tenure and nearly a year after joining the board.

Doug Brooks, who has served on the Southwest board for over 15 years, has been chosen as chairman. This change follows the appointment of six new members to the airline's board by an activist investor in October, with Gangwal becoming chair a month later.

His departure from that position, effective 1 August, is due to other professional obligations not related to Southwest, the Dallas-based carrier stated on Thursday.

Brooks previously served as chairman, president, and chief executive of Brinker International Inc., a global restaurant company. The carrier noted that Gangwal will be at the helm of a new fleet oversight committee at Southwest, while serving on the finance, nominating, and corporate governance committees.

Activist Investor Pushes for Change

Elliott claimed that senior management and the board had allowed Southwest to fall significantly behind its rivals, missed significant revenue opportunities, and were unable to resuscitate the company.

It successfully pushed out then-chairman Gary Kelly, and Southwest subsequently made sweeping changes to its business model, introducing premium options such as increased legroom, fees for checked bags, and assigned seating.

'We remain confident in Southwest's trajectory and we look forward to continuing our constructive engagement as the company executes its plan to drive long-term value,' Elliott, which owns over 10% of the airline, said Thursday in an emailed statement.

Gangwal's Experience and New Role!

Gangwal is most recognised for co-founding InterGlobe Aviation, a venture that accounts for the majority of his wealth. He also led US Airways from 1996 to 2001, and spent ten years at United Airlines Inc., starting in 1984.

From 2003 to 2007, he served as chairman, president, and chief executive officer at Worldspan Technologies Inc. Southwest is forming a fleet-related committee to oversee the company's strategy for acquiring aircraft, the airline announced.