The Federal Aviation Administration said Monday it is opening a new inquiry into Boeing, this time related to the company’s inspections of the 787 Dreamliner and whether employees falsified records.
25.04.2024 - 21:49 / skift.com / Southwest Airlines / Bob Jordan / Meghna Maharishi
Southwest Airlines is pulling out of four airports as it deals with Boeing delays.
The carrier is exiting Bellingham International Airport, Cozumel International Airport, George Bush Intercontinental Airport and Syracuse Hancock Airport, CEO Bob Jordan said in an earnings release on Thursday.
Southwest also reported a wider-than-expected first-quarter loss at $231 million. However, Jordan said Southwest also had record revenues ($6.3 billion) and passengers flown during the first three months of 2024.
Boeing delivery delays are continuing to strain the airline industry. The plane maker is currently manufacturing fewer 737 Maxes due to increased production oversight to weed out quality issues following the Alaska Airlines blowout incident.
Southwest previously said it would slow pilot and flight attendant hiring due to delays with the Max 7, which is still not certified.
“Given the news on Boeing aircraft delivery delays … managing our plan just is not enough,” Jordan said at the JPMorgan Industrials Conference March 12. “Going forward, we are actively and urgently focused on further cost reductions.”
Jordan said the Southwest is now expecting to end the year with 2,000 fewer employees compared to 2023.
Southwest is also further trimming its delivery expectations. Previously, the airline said it expected to receive 46 737 Maxes and zero Max 7s in 2024. Now, those expectations have been slashed to 20 737 Max deliveries for the year.
These delays, along with the consequent capacity reductions for the second half of the year are expected to dampen Southwest’s full-year financial targets.
The carrier previously said it expects to cut its schedule during the latter half of 2024 partly due to rising operating costs stemming from record deals with its pilots’ and flight attendants’ unions.
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
The Federal Aviation Administration said Monday it is opening a new inquiry into Boeing, this time related to the company’s inspections of the 787 Dreamliner and whether employees falsified records.
Under a new rule announced by the Department of Transportation, Southwest Airlines must provide passengers with a $75 travel voucher for certain flight delays and cancellations.
Starting April 30, Southwest Airlines is required to provide a transferrable voucher worth at least $75 for any controllable cancellation or delay that causes passengers to reach their destination three or more hours after their scheduled arrival time, the U.S. Department of Transportation said Tuesday.
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.
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.
After the devastation of back-to-back hurricanes in 2020, Lake Charles is now welcoming a wave of new developments that will redefine its tourism landscape. Several projects are slated to debut as early as this summer. PORT WONDER: Summer 2024
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.
American Airlines said Friday it would reduce some of its international routes during the second half of the year and early into 2025 because of ongoing Boeing 787 Dreamliner delays.
Southwest Airlines is considering making major changes to its seating process.
Southwest's famous boarding process may be up in the air. On Thursday, after reporting a net loss of $231 million, the Dallas-based airline announced a variety of changes, including the potential for new seating assignments and confirmed the closure of operations at several airports.
The ongoing Boeing 737 Max 9 fallout is continuing to burn airlines.