Southwest to exit 4 airports and limit hiring following profit loss, Boeing plane delays
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Southwest Airlines said it will limit hiring and suspend operations at four airports in the U.S. and Mexico following a loss of profits and delays getting planes from Boeing.
In a release posted after the company's earnings call Thursday, the Dallas, Texas-based budget airline reported a net loss of $231 million in the first quarter of 2024. Southwest President and CEO Bob Jordan called those losses "disappointing," and said the airline is adjusting to "slower than planned growth for this year and next."
In an interview with CNBC ahead of the earnings call Thursday, Jordan said the company was weighing options for cabin reconfiguration to address its recent revenue shortfall.
“We’re looking into new initiatives, things like the way we seat and board our aircraft,” Jordan told the network.
The airline said it now expects to end this year with approximately 2,000 fewer employees than 2023 through cost control initiatives, including limiting hiring and offering voluntary time off programs, not through furloughs or layoffs.
And with aircraft delivery delays from Boeing that could continue into 2025, Southwest said it is also planning to mitigate any operational and financial impacts while keeping reliable flight schedules for customers.
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What airports is Southwest leaving?
After reporting financial losses in the first quarter of 2024, Southwest said it is closing operations at four airports, three in the U.S. and one in Mexico, the first time the airline has exited an airport since 2019.
- Bellingham International Airport in Bellingham, Washington
- George Bush Intercontinental Airport in Houston, Texas
- Syracuse Hancock International Airport in Syracuse, New York
- Cozumel International Airport in Mexico
Southwest also announced plans to cut about half its flights out of the Hartsfield-Jackson Atlanta International Airport and one third from the Chicago O'Hare International Airport.
Although Southwest is pulling out of George Bush Intercontinental Airport, the company will maintain operations out of the William P. Hobby Airport in Houston.
Contributing: Zach Wichter, USA TODAY.