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Southwest Airlines (NYSE:LUV) announced on Thursday that it will stop flying to four airports in the United States and Mexico in a cost-cutting move. The Dallas-based carrier plans to end service and close operations at Bellingham International Airport, Cozumel International Airport, Houston’s George Bush Intercontinental Airport, and Syracuse Hancock International Airport. Southwest (LUV) also plans to implement capacity reductions at both Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport as part of a network optimization effort.
The company also disclosed that it will limit employment processes and voluntary leave programs to help reduce costs and is expected to end the year with 2,000 fewer employees than it had at the end of 2023.
CEO Bob Jordan: “Achieving our financial goals is an immediate imperative. The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers.”
Shares of Southwest Airlines (LUV) were down 6.95% in early afternoon trading on Thursday after the Q1 earnings report disappointed investors.
