With Fewer Planes, These Are The 4 Airports Losing Southwest Airlines Service

Southwest Airlines has said it will optimize its network and stop services from some airports following a weak quarter. The airline will also trim its workforce as it looks to cut down losses amid turbulent times resulting from, among other things, fewer aircraft deliveries from Boeing.

Four airports to lose Southwest services

Southwest is restructuring its network and cutting down loss-making routes to contain its losses, and that includes stopping operations at some airports. The carrier reported a net loss of more than $230 million in the first quarter of this year, and that is reflected in its business strategy going forward. Come August 4, the following four airports will not see service from the airline:

• George Bush International Airport in Houston
• Bellingham International Airport in Bellingham, Washington
• Syracuse Hancock International Airport in Syracuse, New York
• Cozumel International Airport on Cozumel island, Mexico

The airline’s CEO, Bob Jordan, explained these changes on the first quarter earnings call, saying,

“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.”

Fewer planes expected this year

Southwest, an all-Boeing 737 operator, has had to make network changes as it won’t meet its aircraft requirement to sustain its projected growth. The carrier said that it will receive just 20 of the 46 Boeing 737 MAX 8 planes initially expected to arrive in 2024, and halting operations at some airports is one of the ways to deal with the situation.

Photo: Angel DiBilio | Shutterstock

This isn’t the first time that late deliveries from Boeing have had an effect on Southwest’s business strategy. Earlier this year, it was reported that the airline had reduced pilot hiring for most of 2024 when it went without a new pilot hire class for the first time in decades.

Among the reasons for freezing the hiring was fewer aircraft deliveries this year, with the situation not warranting new pilots. Southwest’s decision was also reflective of a general trend within the industry when pilot hiring was slowing down amid a huge surge in hiring the previous year. Southwest is also looking to reduce the size of its workforce and expects to have around 2,000 fewer employees by the end of 2024.

Related

Southwest Airlines Reduces Pilot Hiring For 2024

The carrier has postponed new hiring even for candidates with offers.

Poor financial results

These latest developments come on the heels of Southwest declaring its first-quarter results and reporting a net loss of $231 million. While it earned $6.3 billion in revenue, a 10.9% increase year-on-year, the operational costs also increased by 12.2% YoY to $6.7 billion.

Southwest has seen some turbulent times recently. In 2023, it had to absorb much of the losses made in 2022 due to its operational meltdown, and now the issues with Boeing’s 737 production are adding to its existing problems.

Photo: Markus Mainka | Shutterstock

However, even with the Q1 losses, Jordan pointed out that the airline ended the quarter with healthy profits and margins in March. Hopefully, with the aforementioned changes in its strategy, Southwest can trim down its losses for the rest of the year.

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