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American and Southwest airlines both say they lost money in Q1
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IntroductionDALLAS (AP) — Southwest Airlines will limit hiring and stop flying to four airports as it copes with ...
DALLAS (AP) — Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing.
Both Southwest and American Airlines reported first-quarter losses Thursday. Demand for travel remains strong, including among business flyers, but airlines are dealing with higher labor costs, and delays in getting new aircraft from Boeing are limiting their ability to add more flights.
Southwest said it lost $231 million. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance,” including by slowing down hiring and asking employees to take time off.
The Dallas-based carrier said it expects to end this year with 2,000 fewer employees than it had at the start of the year.
In August, Southwest will stop flying to four airports: Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport. Southwest hasn’t left an airport since 2019, when it pulled out of Newark, New Jersey, and consolidated its New York City-area flying at LaGuardia Airport.
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