• 09 May, 2024
  • Travel tips
  • Travomint

Southwest Cost-cutting Measure: Pulling out of four Major Airports. 

Recently, Southwest Airlines suspended operations at four airports following lackluster performances and delays in jet delivery from Boeing. These delays mainly refer to the monetary loss, which was reported as a quarterly loss of 39 cents/share or $239 million. 

A statement given by Southwest CEO Bob Jordan on first-quarter earnings:

"Achieving our financial goals is an immediate imperative. The Recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our customers." 

What airports is Southwest pulling out of?

In a recent statement by the CEO of Southwest Airlines, "What airports is Southwest Cutting?"  it was mentioned that the airline is closing all its operations at four airports, one of which is in Mexico while the others are in the US. Please note down; 

  • George Bush Intercontinental Airport in Houston, Texas. 
  • Syracuse Hancock International Airport in Syracuse, New York. 
  • Cozumel International Airport in Mexico. 
  • Bellingham International Airport in Bellingham, Washington. 

NOTE: Southwest has also announced that they are mitigating around half of its aviation services out of the Hartsfield Jackson Atlanta International Airport and one-third from the Chicago O'Hare International Airport. 

Why Southwest is leaving four airports?

Based on different statements given by the CEO of Southwest, you can withdraw certain points that will clear the concern about why the airline is stopping its operations from four major airports. Delve into the key points highlighted below; 

Loss of profits. 

As per Southwest Airlines' budget, it has reported a net loss of $231 million in the first quarter of 2024, and the CEO has referred to these losses as "Disappointing" and has experienced slower growth than planned for this and next year. 

Additionally, CEO Jordan has said that the company is accumulating techniques for cabin reconfiguration to address the revenue shortfall, and "We're looking into new initiatives, things like the way we seat and board our aircraft." 

Boeing Delivery Issues. 

According to the statement, "The network actions have really nothing to do with the Boeing delays. We're taking network actions regardless. Now, the Boeing delays are very painful. They hurt us on the revenue front, and they cause us to be inefficient." 

The reports disclosed that Boeing expected to deliver around 79 planes this year, but only 20 planes were delivered. All these operational expenses became a burden for the airline, and the consequences were revenue shortfalls. 

What way forward is Southwest taking?

Due to the dependency of fliers on Southwest Airlines' services, people primarily ask, "What airports are Southwest cutting?" and then they must know what steps they may take. So, consider the points highlighted below to understand;

  • As per the latest reports, Southwest has reduced the number of hirings of additional pilots cause of delayed deliveries of Boeing. 
  • Different pilots are being urged to take voluntary paid leave. 
  • It has stopped operating at four airports, as mentioned above. 

What does this "Pulling out of airports" mean for fliers?

If you have existing bookings with Southwest and are flying to any removed destinations after the August 4 (deadline), Southwest said it will be "reaching out to all affected with their specific options" to reschedule the journey. 

However, Syracuse Airport's statement said it would "remain actively engaged with Southwest Airlines to determine a future date for the airline to relaunch service in Syracuse." 

Given that, "network actions will continue." It is recommended that travelers be prepared for other flight and destination cuts for Southwest and other existing airlines. Additionally, it is requested you keep yourself in the loop with all the updates on airlines and any updated booking, canceling, and other strategies.