Southwest Airlines
Q1 2023 Earnings Call
Apr 27, 2023, 12:30 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Southwest Airlines first quarter 2023 conference call. My name is Chad, and I will be moderating today's call. This call is being recorded, and a replay will be available on southwest.com in the investor relations section. After today's prepared remarks, there will be an opportunity to ask questions.
[Operator instructions] At this time, I'd like to turn the call over to Mr. Ryan Martinez, vice president of investor relations. Please go ahead, sir.
Ryan Martinez -- Vice President, Investor Relations
Thank you, operator, and welcome, everyone, to our first quarter 2023 conference call. In just a moment, we will share our prepared remarks and then jump into Q&A. On the call with me today, we have our president and CEO, Bob Jordan; executive vice president and CFO, Tammy Romo; executive vice president and chief commercial officer, Ryan Green; and chief operating officer, Andrew Watterson. A quick reminder that we will make forward-looking statements, which are based on our current expectation of future performance, and our actual results could differ materially from expectations.
Also, we will reference our non-GAAP results, which exclude special items that are called out and reconciled to our GAAP results in our press release. So, please refer to the disclosures in our press release from this morning and visit our investor relations website for more information. With that, Bob, I'll turn it over to you.
Bob Jordan -- Executive Vice President, Corporate Services
Thank you, Ryan, and thank you, everyone, for joining us this morning. We incurred a first quarter net loss that was in line with our expectations, driven by a $380 million pre-tax negative financial impact related to the December operational disruption, roughly $325 million of that was from lower revenue in January and February, much of that cancellations of holiday return trips. We saw a strong rebound in revenue trends in March, resulting in record first quarter revenues despite the impact of the December disruption. Travel demand remained strong thus far, but we remain mindful of the uncertain economic environment.
You have to be given all the headlines and trends we are seeing across many industries. We have tough year-over-year revenue comparisons here in the second quarter with last year's domestic revenue environment getting a boost from international closures. Taking that into consideration, demand, particularly leisure continues to show strength as we head into the busy summer travel season. Our cost outlook is higher this year due to a few moving parts, as we are making additional investments in the operation based on our learnings from December.