Southwest is one of the most used airlines in the southwest of the US, transporting passengers to and from many destinations.
After having a significant loss that has limited the company’s ability to hire and retain staff, Southwest has made the difficult decision to close its operations at four different airports.
Southwest Had a Quarter Loss of Millions of Dollars
In the first quarter of 2024, Southwest faced a loss of $231 million.
This has affected their ability to order new Boeing planes and hire and retain staff.
Southwest Will Have Slower Growth Over 2024 and 2025
Southwest’s President and CEO, Bob Jordan, has said the losses are “disappointing,” but that Southwest plans to adjust.
However, he has also predicted that the company will grow slower than normal throughout the rest of 2024 and into 2025, which could be catastrophic.
Southwest Will Lose 2000 Employees
With the predicted slow growth and the quarterly loss so far in 2024, Southwest is set to lose 2000 employees in 2024.
The airlines company plans to limit the amount of hiring it does throughout the year and offer voluntary time off programs.
Airports Used by Southwest That Are Affected
It is expected that Southwest will close operations at four different airports across the US.
The airports said to be affected are 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.
Southwest Is Reducing Flights at Airports
Southwest is closing operations at some airports and is planning on reducing the number of flights at others.
The airports that will be affected by this are Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.
Southwest Airlines Has Had Issues Before
The airline’s operations closure at four airports is the latest in a line of issues.
Southwest Airlines suffered its first fatality back in 2018, which, at the time, was after 47 years of operating.
The Issue Between Southwest and Boeing
One reason Southwest is losing money is because it only uses Boeing planes.
Boeing planes have had many issues in recent months, with many passengers choosing to avoid flying on these planes, which has caused many problems for Southwest.
Southwest Will Receive 20 Boeing Aircrafts
Despite the concerns with Boeing, Southwest still insists on using the aircraft; however, they will have a reduction in their use.
Southwest initially expected to receive 46 Boeing aircraft in 2024, but this number has gone down by more than half to just 20 planes.
Shares in Southwest Have Fallen
As a further blow to the company, shares in Southwest have fallen.
On April 27, the company’s shares fell by 7% and closed at $27.26.
Southwest Passengers’ Complaints About Seating
One aspect of flying Southwest that still doesn’t benefit customers is the seating.
In an attempt to increase seating capacity on their aircraft, the company has received complaints from customers about how cramped the seating is. With customers unhappy, this could affect the number of people choosing to fly with the company and see its profits plunge further.
Rising Costs Have Affected Southwest
The rising cost of resources, such as fuel, has led Southwest to close its operations at the four previously mentioned airports, and reduce operations at two.
As the airline is wanting to deliver value to shareholders and the changing patterns in travel for its customers, these have all contributed to it closing operations. But whether any of this will help save the airline from suffering a further loss remains to be seen.
