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Southwest Airlines will close operations at four airports and cut approximately 2,000 jobs.
The airline posted a disappointing first 2024 quarterly report, which included a net loss of $231 million.
“The airline cited Boeing’s recent troubles involving its aircraft, which has led to a delay in manufacturing new planes, in its report,” the Washington Examiner reports.
NEW: Southwest closing operations at four airports, fire 2,000 employees
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“While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March. We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations. I want to thank our more than 74,000 Employees for their continued Warrior Spirit to maintain a reliable and resilient operation as we adapt to aircraft delivery constraints and adjust to slower than planned growth for this year and next,” Southwest President and CEO Bob Jordan said in a statement.
“Our first quarter 2024 revenue performance, while shy of our prior aspirations, resulted in record first quarter operating revenues, record first quarter passengers carried, and a solid sequential improvement in nominal unit revenue when compared with seasonal norms. The sequential improvement was driven by an acceleration in managed business revenues as well as benefits from network adjustments, which started in earnest with the March schedule. While costs remain a headwind, we are realizing benefits from our ongoing cost reduction actions and remain focused on enhancing productivity and controlling discretionary spending. We also have certainty with labor rates, having ratified agreements with 11 of our labor groups in the past 18 months, including the agreement ratified yesterday for our Flight Attendants,” he continued.
“Achieving our financial goals is an immediate imperative. The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers,” he added.
Jordan announced the airline will close operations at Bellingham International Airport, Cozumel International Airport, Houston’s George Bush Intercontinental Airport, and Syracuse Hancock International Airport.
New: Southwest Airlines closing operations at four airports and firing 2,000 employees. pic.twitter.com/bqB2p8fP6x
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From the Washington Examiner:
Beyond ceasing operations at these four airports, Southwest Airlines is also planning to end the year with 2,000 fewer employees. This is part of the airline’s cost-cutting initiatives, which will also limit its voluntary time-off programs.
Southwest Airlines is not the only airline that suffered losses in its first quarterly report, with American Airlines losing $312 million in its most recent quarter. However, the airline has stated it is expecting to return to profitability in the second quarter.
The financial setbacks of Southwest Airlines come after a Boeing 737 plane operated by the airline lost its engine cover during takeoff. The plane immediately landed back in Denver after takeoff, and its passengers were taken off the aircraft.
Boeing, which has come under scrutiny for various setbacks in recent years, saw its CEO, Dave Calhoun, resign from his position last month. In the wake of the resignation, Transportation Secretary Pete Buttigieg argued that the next CEO needs to be “1,000% on top of all quality and safety issues.”
