Apr 25, 2024 - Economy

Southwest ending service at 4 airports after posting first quarter loss

Jacob Knutson

Southwest airlines plane at Atlanta airport. — A Southwest plane and baggage carts at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, U.S., on Monday, Dec. 27, 2021. Photo: Elijah Nouvelage/Bloomberg via Getty Images

Southwest Airlines said on Thursday after posting a first quarter loss that it will stop operating at four airports and reduce flights at others to cut costs.

Why it matters: The company, which only operates Boeing 737 jets, said in an earnings call that it has been hurt by delayed Boeing deliveries stemming from the aerospace manufacturer's ongoing crisis.

Driving the news: The airline plans to end operations at Bellingham International Airport in Washington State, Cozumel International Airport in Mexico, George Bush Intercontinental Airport in Houston and Syracuse Hancock International Airport in New York.

It said it will also "significantly" restructure operations at other airports, including reducing flights at Hartsfield-Jackson Atlanta International Airport and Chicago O'Hare International Airport.

By the numbers: Southwest reported a loss of $231 million in the first quarter, up from the $159 million it lost in the same quarter last year.

The loss came in spite of the company recording first quarter revenue of $6.3 billion.

What they're saying: Southwest CEO Bob Jordan said in an interview with CNBC on Thursday the decision to stop or change operations at certain airports was unrelated to the Boeing delivery delays.

"We're taking network actions regardless," he said.
"Now, the Boeing delays are very painful, they cause us to replan, they hurt us on the revenue front, they cause us to be inefficient, and we're working all of that."

Go deeper: Boeing can't boost 737 MAX production without improving quality, Buttigieg says

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Southwest ending service at 4 airports after posting first quarter loss

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