Southwest Airlines announced it would slow hiring and cease operations at four airports as part of cost-cutting measures following a disappointing first-quarter performance.
Despite reporting a first-quarter revenue of $6.3 billion, the low-cost carrier incurred a loss of $231 million in the first quarter of 2024, surpassing the $159 million loss it took in the same period last year.
As the world’s largest carrier of 737 MAX aircraft, Southwest has been reeling in the effects of Boeing’s manufacturing woes. The airline says it expects to receive 20 aircraft deliveries from Boeing this year, a significant decrease from its initial projection of 46 aircraft. Additionally, the carrier says it plans to cut 2,000 jobs and offer voluntary time off programs.
“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” Southwest CEO Bob Jordan said on Thursday.
Meanwhile, American Airlines announced a quarterly loss of $312 million but maintained an optimistic outlook for its earnings in the current quarter. According to the New York Times, Alaska Airlines and United Airlines reported narrower losses than expected in the first three months of the year, while Delta Air Lines was the only major carrier to report a profit in the first quarter.
