In light of the continuing problems with Boeing, Southwest Airlines has decided to reduce flights from several airports, lay off employees, and stop operations at four locations.
Losses of $231 million in revenue for the first quarter sent its share price down 10 percent in early trading. Southwest Airlines, which uses Boeing 737 planes, cut costs due to Boeing delivery delays.
Airports in Cozumel, Mexico, Washington State, Syracuse, New York, and Houston, Texas, will all see Southwest’s operations come to a halt in August. Flights at Chicago O’Hare and Hartsfield-Jackson Atlanta International Airport will also be reduced.
This month, an engine cowling from a Southwest Airlines Boeing 737-800 broke off during takeoff from Denver International Airport, forcing the plane to make an emergency landing. After that, a different Boeing 757 had a major issue just before takeoff due to a nose wheel falling off.
Publications in the sector revealed product updates for the American low-cost carrier last year, with CEO Robert Jordan predicting that red-eye flights might be introduced as early as 2025.
The airline is considering late-night flights as a way to use its current assets and provide consumers with additional flying hour alternatives.
Southwest Airlines has lowered its original forecast for the number of new Boeing planes it would receive this year from 46 to 20. The Federal Aviation Administration (FAA) has reportedly limited Boeing’s manufacturing until the company resolves its quality problems. The exact timetable for the deliveries is uncertain.
The airline’s CEO, Bob Jordan, has issued a statement saying that Boeing’s latest news about more aircraft delivery delays poses big problems for 2024 and 2025. In addition to restricting new recruits, Southwest Airlines has announced that it will slash 2,000 workers.
After a horrible quarter, Boeing’s stock has been dipping. After reporting losses and having a negative cash flow of roughly $4 billion due to the 737 Max disaster, the aerospace giant’s shares fell 2.8% recently.
