Southwest Airlines is ceasing operations at four airports and reducing flights from others, in an effort to cut costs after growth plans were hindered by fewer than expected plane deliveries from Boeing.
Southwest reported a loss of $231 million for the first quarter, worse than analysts expected, leading to a 10 percent drop in share price. The airline plans to cut costs by closing operations at specific airports and restructuring flights.
Delays in Boeing plane deliveries have impacted Southwest due to the grounding of Boeing 737 Max jets and production slowdowns. Southwest expects 20 new jets this year, down from the 46 planned.
Boeing's further aircraft delivery delays pose challenges for Southwest, with 2024 and 2025 affected. Southwest's CEO mentioned limiting hiring, reducing employees, and adjusting plans due to the situation.
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