Southwest Airlines to exit four airports, anticipating layoffs
Southwest Airlines announced the closure of operations at four airports following disappointing Q1 2024 results. Boeing’s aircraft issues causing production delays were cited. The airline reported a $231 million net loss. CEO Bob Jordan mentioned the focus on network optimization to address poor markets, leading to the closure of operations at specific airports. Southwest Airlines revealed the shutdown of operations at four airports due to underwhelming Q1 2024 performance. Delays in Boeing’s aircraft production were highlighted as a contributing factor. The airline disclosed a $231 million net loss. CEO Bob Jordan emphasized network optimization to tackle underperforming markets, resulting in the closure of operations at designated airports.
Southwest Airlines announced that it is closing its operations at four airports over disappointing results in its first 2024 quarterly report.
The airline cited Boeing’s recent troubles involving its aircraft, which has led to a delay in manufacturing new planes, in its report. The airline also suffered a net loss of $231 million in the first quarter, with Southwest Airlines CEO and President Bob Jordan calling it “disappointing.”
“To improve our financial performance, we have intensified our network optimization efforts to address underperforming markets,” Jordan said. “Consequently, we have made the difficult decision to close our operations at Bellingham International Airport, Cozumel International Airport, Houston’s George Bush Intercontinental Airport, and Syracuse Hancock International Airport.”
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.
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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.”
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