Good morning from Skift. It’s Friday, May 17. Here’s what you need to know about the business of travel today.
30.04.2024 - 00:39 / afar.com / Bob Jordan / Airlines
When Southwest Airlines reported larger than expected financial losses in its most recent quarterly earnings call on April 25,the airline also announced that it will be cutting service to four airports airports as of August 4, 2024. Additionally, Southwest is planning to reduce capacity at two other major destinations. The goal of these cuts is to “improve unit revenue performance and operating margin,” according to the earnings call. The airline has not ruled out further cuts to its network, adding to the uncertainty plaguing the airline industry in recent months.
On August 4, “as peak summer 2024 travel ends,” Southwest says it will eliminate flight service to the following four airports and will no longer take reservations for travel after that date:
In addition, Southwest says it will “significantly restructure other markets,” beginning by “implementing capacity reductions” at the following airports:
Southwest did not specify which routes the capacity reductions would affect and the airline has not ruled out additional route eliminations or flight reductions, with CEO Bob Jordan saying that “network actions will continue” as Southwest tries to work its way back to profitability.
Southwest’s recent profit loss is the primary driver for the flight cuts. The route reduction is being undertaken with the goal of “network optimization,” according to the carrier.
“To improve our financial performance,” the airline said in its recent earnings call, “we have intensified our network optimization efforts to address underperforming markets. Consequently, we have made the difficult decision to close our operations” at the four airports and to reduce capacity in two others.
Syracuse Airport disputes the destination’s underperformance, saying in a statement that Southwest told the hub the “market was performing as expected for a new city” after two and a half years operating there,implying there was another issue at hand, including possibly the lack of aircraft due to delivery issues at Boeing.
Indeed, one has to wonder if the issues at Boeing are partially to blame for the network cuts. Southwest acknowledged the impact of Boeing’s production and delivery problems, saying on the call that “further aircraft delivery delays present significant challenges . . . we are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules.”
But Jordan said that while Boeing’s plane delivery issues are “painful” for the airline, aircraft availability is not the main cause for the route cuts. “The network actions really have nothing to do with the Boeing delays, [and] we’re taking action regardless,” he stated during a post-earnings call interview
Good morning from Skift. It’s Friday, May 17. Here’s what you need to know about the business of travel today.
After a full restoration, the Loch Ness Monster roller coaster reopened at Busch Gardens Williamsburg over the weekend.
Southwest Airlines recently announced the launch of its new Orlando – Nassau route. Daily nonstop flights will connect Central Florida’s metropolitan hub with The Bahamas’ capital city at the height of the summer months. The Orlando – Nassau flights will operate from 4 June to 4 August, with departures from Orlando and arrivals in Nassau. “The expansion of Southwest Airlines’ Central Florida route map to include a new daily service to Nassau is another testimony to the government’s efforts and commitment to grow air stopover arrivals throughout our 16-islands destination aggressively,” says the Honourable I. Chester Cooper, Bahamas Deputy Prime Minister and Minister of Tourism, Investments, and Aviation.
Delta Air Lines will charter the majority of WNBA game flights after the basketball league agreed to shuttle its players in private planes for the 2024 season.
Have the loyalty programs of the biggest U.S. airlines grown so huge that smaller airlines can’t compete? That was one of the concerns during a hearing Thursday with the Department of Transportation and the Consumer Financial Protection Bureau.
Airlines have new bragging rights ahead of the busy summer travel season. For the third year in a row, Southwest Airlines was ranked as the top airline for customer satisfaction for economy or basic economy, according to JD Power's 2024 North America Airline Satisfaction Study published on Wednesday.
Southwest Airlines is introducing new enhancements to its Rapid Rewards loyalty program, offering members greater flexibility and value when it comes to booking flights and hotels.
As the host of popular TV shows ranging from Bizarre Foods to Magnolia Network’s Family Dinner, Andrew Zimmern has traveled and eaten his way across the globe.
Last week, Southwest’s CEO Bob Jordan ignited a flurry of headlines when he suggested that the struggling airline could make changes to some of its long-standing policies in an attempt to increase ancillary revenue.
Southwest Airlines' settlement terms with the Department of Transportation (DOT) are kicking in — leading to future customers receiving compensation if they experience a significant flight delay. As part of the settlement sparked from the airline’s 2022 holiday meltdown, Southwest has agreed to award $75 or more in transferrable vouchers to travelers who reach their destination at least three hours late due to an airline-caused disruption or cancellation, according to the DOT.
CLEAR, the secure identity company easing the airport security screening process in airports across the U.S., announced a new partnership with Hawaiian Airlines ahead of its launch at Maui’s Kahului Airport (OGG) on May 1.
Southwest Airlines has rolled out a tempting new deal for its Rapid Rewards loyalty program members, offering an up-to-50 percent discount on the purchase of points through its latest rewards sale.