Southwest is closing operations at four airports because of delivery delays for Boeing airliners. The cutback comes as the airline reported a first-quarter loss of $231 million and said it will also limit hiring and offer voluntary leave to employees.
The airline is closing operations at Cozumel International Airport in Mexico, Syracuse Hancock International Airport in New York, Bellingham International Airport in Washington state, and George Bush Intercontinental Airport in Houston. The William P. Hobby Airport, the other airport in Houston, will continue to be utilized by Southwest.
“While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March,” Southwest CEO Bob Jordan said in a statement. “We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations.”
“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” he said.
Southwest said they “expect” to finish this year with 2,000 fewer workers than in 2023. The airline, dealing with delays from plane manufacturing, is expecting to have 20 plane deliveries this year of Boeing’s 737 Max 8. It represents a reduction from 46 expected earlier in the year.
Boeing, which supplies jets to various airlines, is dealing with decelerated production following the January Alaska Airlines incident when a door plug blew off of a 737 Max 9 plane — the latest in a series of safety issues that has drawn regulatory and congressional scrutiny.
“We are focused on achieving our financial prosperity goals and creating value for our Shareholders, while we adjust to changes in our aircraft delivery plans, Customer travel patterns and preferences, higher fuel prices, and other cost pressures,” Jordan said.