Southwest is stopping operations at four airports due to delays in getting Boeing planes. The airline suffered a $231 million loss in the first quarter and will also reduce hiring and provide voluntary leave to staff.
The airline is stopping services at Cozumel International Airport in Mexico, Syracuse Hancock International Airport in New York, Bellingham International Airport in Washington state, and George Bush Intercontinental Airport in Houston. However, it will continue to use the William P. Hobby Airport in Houston.
Southwest CEO Bob Jordan expressed disappointment about the first quarter loss but also mentioned that the company still achieved healthy profits and margins in March. The focus is now on taking quick action to address financial underperformance and adjust for revised aircraft delivery expectations.
He also mentioned that the recent news from Boeing about further aircraft delivery delays will pose significant challenges for 2024 and 2025.
Southwest anticipates finishing this year with 2,000 fewer workers than in 2023 due to ongoing plane manufacturing delays. The airline now expects only 20 plane deliveries this year of Boeing’s 737 Max 8, a reduction from the earlier expectation of 46.
Boeing, a supplier of jets to several airlines, is encountering slowed production following a safety incident involving a 737 Max 9 plane operated by Alaska Airlines in January. This incident is the latest in a series of safety issues that has attracted regulatory and congressional attention.
Jordan emphasized the airline's focus on achieving financial goals and creating value for shareholders, while adapting to changes in aircraft delivery plans, customer travel patterns and preferences, higher fuel prices, and other cost pressures.
