James Myers of OAN
1:16 PM – Thursday, April 25, 2024
Southwest Airlines announced it will lay off approximately 2,000 employees and close operations at four different airports around the world.
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The popular airline announced the news on Thursday, causing anxiety among Southwest Airlines employees in the United States.
This announcement comes after American Airlines and Southwest Airlines both reported large financial losses in the first quarter of 2024. Both airlines have had to contend with rising labor costs and delays in acquiring new aircraft from Boeing, which has limited their ability to add flights at once. A time when demand for travel increases.
American Airlines reported a loss of $312 million as labor costs rose 18%, Southwest Airlines reported a loss of $231 million, and the company’s CEO said the company It said it was acting quickly to address delays in the delivery of new aircraft.
Southwest Airlines will close 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 we are disappointed to incur a loss in the first quarter, we ended the quarter with healthy margins and profits in March,” Southwest CEO Bob Jordan said in a statement. Ta. “We are focused on controlling what we can control and have already taken swift steps to address the financial downturn and revise our aircraft delivery forecasts.”
“Recent news from Boeing regarding further aircraft delivery delays poses significant challenges for both 2024 and 2025,” he continued.
“We are focused on achieving our goals of financial prosperity and creating value for our shareholders while adapting to changes in aircraft delivery plans, customer travel patterns and preferences, rising fuel prices and other cost pressures. ,” Jordan added.
Southwest Airlines expects to have 802 aircraft in its fleet by the end of the year, down from an initial estimate of 814.
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