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Southwest Airlines will end service to four airports and cut hiring significantly due to financial issues and the wait to get new planes from Boeing, according to the Associated Press.
The airline will no longer service flights to Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush International Airport in Houston, the same city in which it holds major operation at the smaller Hobby Airport. Southwest Airlines was reported to have suffered $231 million in first-quarter losses for the 2024 fiscal year on Thursday (April 25).
Airlines are still seeing a high demand for travel, however, are struggling to meet them due to deal with higher labor costs and delays in aircraft deliveries. Southwest CEO Robert Jordan claimed the company was reacting quickly "to address our financial underperformance," which included asking employees to take time off, as well as slow down the hiring process with an expected 2,000 employees than at the start of 2024.
Southwest believes the closures will help focus on more profitable locations, as well as deploy planes that are smaller than previously planned. The airline said it expected to get only 20 new 737 Max 8 jets from Boeing in 2024, which is 46 less than anticipated several weeks ago and will offset part of the shortage by retiring fewer planes.
Boeing is currently facing Senate hearings over safety culture and manufacturing quality as its aircrafts have been reported to have experienced several serious incidents after the door plug panel blew off of an Alaska Airlines flight on January 5.