A major airline announced this week that it will be cutting operations at multiple international airports, leading to hundreds of layoffs.
Southwest Airlines shared the news on Thursday, April 25, revealing that the closure of its services at four airports will leave 2,000 employees out of work. The announcement follows serious financial loss reports during the first quarter of 2024. American Airlines faced similar problems, including rising labor costs and delays in being provided aircraft from the plane manufacturer, Boeing.
Southwest Airlines pulls out of four airports amid expected layoffs https://t.co/PF1xNLvUhy https://t.co/PF1xNLvUhy
— Washington Examiner (@dcexaminer) April 25, 2024
Southwest has reportedly lost $231 million with such business delays and interferences, coming up less impacted than its counterpart, American Airlines, which previously said it lost $312 million with the 18% increase in labor costs.
According to the airline, Southwest will no longer fly from a number of airports scattered across North America. The impacted facilities are Syracuse Hancock International Airport in New York, the George Bush Intercontinental Airport in Houston, Texas, the Bellingham International Airport in Washington state and the Cozumel International Airport in Mexico.
Bob Jordan, CEO of the airline company, said in a statement that the financial losses are “disappointing” despite “healthy profits” that were counted last month. He added that the company is “focused” on impacting “what we can control” and is working towards fixing the “financial underperformance” and “adjust” plans to account for the delay in plane manufacturing and delivery.
He also acknowledged that Boeing’s recent announcement that its deliveries would continue to be delayed “presents significant challenges” as Southwest looks to business ventures in the next two years. Jordan added that the company is committed to “financial prosperity” initiatives and ensuring shareholder value while re-structuring its approach to delivery delays, customer preferences and rising fuel prices.
The trouble with earning profits amid the various business challenges faced by Southwest comes as Boeing’s production of commercial airplanes has been delayed following the malfunction of a 737 Max 9 jet earlier this year. The plane manufacturer has also been under fire with a deposition lawsuit, spearheaded by former employees and whistleblowers, which draws into question the company’s safety and production protocols.
