3 weeks ago
Southwest Airlines announced Thursday that nan bearer is pulling retired of respective airports arsenic it contends pinch financial fallout from Boeing delays.
Chief Executive Bob Jordan warned successful its latest net study that nan bearer has intensified its web optimization efforts to reside underperforming markets.
As a consequence of these efforts, nan Texas-based bearer is closing operations astatine Houston's George Bush Intercontinental Airport successful Houston, nan Bellingham International Airport successful Washington, nan Cozumel International Airport successful Mexico and nan Syracuse Hancock International Airport successful New York.
UNITED SAID IT LOST $200 MILLION FROM THE TEMPORARY GROUNDING OF THE BOEING 737 MAX 9
Jordan placed immoderate of nan blasted connected Boeing's manufacturing delays, stating that "the caller news from Boeing regarding further craft transportation delays presents important challenges for some 2024 and 2025."
A Southwest Airlines rider formation takes disconnected from San Diego International Airport successful San Diego, California, connected Feb. 3, 2023. (REUTERS/Mike Blake/File Photo / Reuters Photos)
While he said it was disappointing to incur a nonaccomplishment successful nan quarter, nan main executive added that nan institution is "focused connected controlling what we tin power and person already taken swift action to reside our financial underperformance and set for revised craft transportation expectations."
Southwest reported a nonaccomplishment of $231 million, aliases 39 cents a share, for nan quarter.
Southwest is nan latest bearer to look setbacks owed to Boeing. In early March, United Airlines announced it was temporarily pausing aviator hiring owed to caller craft certification and manufacturing delays astatine Boeing. It besides precocious asked pilots to return unpaid clip disconnected arsenic delays persist.
The Federal Aviation Administration (FAA) ramped up oversight of Boeing and its supplier Spirit AeroSystems successful caller months, which included halting accumulation description of nan Max aft a doorway plug blew retired mid-flight connected 1 of Alaska Airlines' Max 9 jets successful early January.
BOEING'S TIP LINE SUBMISSIONS WERE UP 500% ON THE YEAR DURING THE FIRST QUARTER
| LUV | SOUTHWEST AIRLINES CO. | 26.68 | -2.60 | -8.89% |
Jordan said Southwest is re-planning quickly successful bid "to mitigate nan operational and financial impacts while maintaining dependable and reliable formation schedules" for customers.
A wide position of a Southwest Airlines pitchy photographed astatine LaGuardia Airport connected Feb. 4, 2024, successful nan Queens borough of New York City. ((Photo by Bruce Bennett/Getty Images) / Getty Images)
The institution is besides implementing different costs power initiatives, specified arsenic limiting hiring and offering voluntary clip disconnected programs, according to Jordan.
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The institution expects to extremity nan twelvemonth pinch 2,000 less labor compared pinch nan extremity of 2023.
