Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing.
Both Southwest and American Airlines reported first-quarter losses Thursday. Demand for travel remains strong, including among business flyers, but airlines are dealing with higher labor costs, and delays in getting new aircraft from Boeing are limiting their ability to add more flights.
In August, Southwest will stop flying to four airports: Cozumel in Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport. Southwest hasn't left an airport since 2019, when it pulled out of Newark, New Jersey, and consolidated its New York City-area flying at LaGuardia Airport.
Boeing is struggling with slower production since a door plug blew out of an Alaska Airlines Max 9 in January, and that is frustrating its airline customers. Executives said Southwest is studying changes in boarding and seating to determine how customers will respond and how much money that could raise. They declined to give details until an investor day in September, but Chief Commercial Officer Ryan Green said bag fees and a curtained-off premium cabin are not being considered. Southwest, alone among major U.S. airlines, doesn't charge extra for one or two checked bags.
“I've talked to everyone at Boeing that I can possibly address and the message is the same: Get your act together,” Isom said on a call with analysts and reporters. “It starts with producing quality products one at a time off the assembly line ... I can't tell you if they're making progress or not.”
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