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Southwest Airlines details changes made after holiday meltdown

Digital Brief: Tuesday, Jan. 17 (A.M.)
Digital Brief: Tuesday, Jan. 17 (A.M.) 02:20

PHILADELPHIA (CBS/CNN) -- Southwest Airlines is revamping its technology, the company said in an update to customers following the airline's operations meltdown last month.

After a major winter storm, there were dozens of flight cancellations at Philadelphia International Airport during the holiday travel season, and baggage piling up in the baggage claim. 

Customers stood in lines for hours trying to get rebooked, and some who spoke with CBS Philadelphia said they booked with a different airline in order to get to their destination on time.

The airline sent an email to customers Monday night outlining its recovery from the mountain of issues encountered during peak holiday travel.

Southwest says it has returned "virtually all of the bags" and processed almost all refunds.

It has also hired an aviation consulting firm to "complete an assessment of the event and make recommendations of additional mitigation elements for us to consider."

The airline has budgeted more than $1 billion of its annual operating plan on improving and maintaining its IT systems.

Southwest says it canceled more than 16,000 flights between December 21 and December 31.

The company lost between $725 million to $825 million in revenue.

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