OAN’s James Meyers
1:16 PM – Thursday, April 25, 2024
Southwest Airlines has announced that they will be laying off around 2,000 employees and closing operations at four different airports across the globe.
The popular airline announced the news on Thursday, prompting worry in Southwest Airlines workers in the U.S.
This comes after American Airlines and Southwest Airlines both reported major financial losses in the first quarter of 2024. Both airlines have had to deal with higher labor costs and delays in getting new planes from Boeing, which is limiting their ability to add more flights at a time of high demand for travel.
American Airlines reported that it lost $312 million as labor costs rose 18%, and Southwest reported a loss of $231 million, with the airline’s CEO saying that the company was acting quickly and dealing with delayed deliveries of new planes.
Southwest will be closing operations at Cozumel International Airport in Mexico, Syracuse Hancock International Airport in New York, Bellingham International Airport in Washington state, and George Bush Intercontinental Airport in Houston, Texas.
“While it is disappointing to incur a first quarter loss, we exited the quarter with healthy profits and margins in the month of March,” Southwest CEO Bob Jordan said in a statement. “We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations.”
“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” he continued.
“We are focused on achieving our financial prosperity goals and creating value for our Shareholders, while we adjust to changes in our aircraft delivery plans, Customer travel patterns and preferences, higher fuel prices, and other cost pressures,” Jordan added.
Southwest Airlines expects to have 802 aircraft by the end of the year, down from the earlier presumption of 814 planes.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts