Southwest Airlines Problems: Temporarily Grounds Flights Due To Computer Outage Among Issues In A Rough Week

It's been a tough week for Southwest Airlines (LUV). The Dallas-based company has dealt with grounded flights due to computer failures and unscheduled maintenance, as well as announcing it lost $60 million from the partial government shutdown.

Southwest's financial loss has put new pressure on the company's plans for new service to Hawaii. Goldman Sachs on Wednesday downgraded the company's stock from "neutral" to "sell" and cut the price target from $66 to $54.

News of the airline's financial losses was merely the latest in a week-long string of setbacks. According to records obtained by CBS News, Southwest last week had the most cancelations and delays in the U.S. out of any airline, with a total of 60 Boeing 737s taken out of service and over 1,000 flights canceled nationwide.

Heightening the matter, which the company has officially called an "operational emergency," is Southwest's ongoing dispute with the mechanics' union (the Aircraft Mechanics Fraternal Association) over pay and bonuses.

Despite the union's willingness to provide overtime labor, with 148 mechanics volunteering, Southwest has reportedly not called any of them in, which union representatives said was due to an issue with the timecard system.

There was also a company-wide computer outage Friday, which resulted in grounded flights across the country after its computer system failed to upload flight plans to the Federal Aviation Administration's network.

Southwest said the outage did not cause any flight cancelations but all early morning flights across the Eastern seaboard were delayed by approximately 40 minutes.

Southwest has also had other issues with the FAA. The agency on Monday concluded that during an ongoing year-long probe, Southwest has continuously miscalculated the weight of checked cargo to a high degree, resulting in discrepancies in takeoff weights. The FAA has yet to disclose whether Southwest will receive fines or other punitive measures for their baggage weight issues.

Despite Southwest's chaotic week, other airlines have also suffered from the record 35-day government shutdown, which ended on Jan. 25. Delta Air Lines (DAL) reported on Jan. 15 that the shutdown cost them at least $25 million for the month.