Southwest Airlines Closing Four Airports amidst Q1 Losses and Boeing Production Issues

Southwest Airlines has announced it will shutter operations at four airports due to disappointing financial results in its first quarterly report this year. In a statement revealing losses amounting to $231 million for Q1 2024, Southwest CEO and President Bob Jordan called the figures “disappointing.” The carrier cited Boeing’s recent difficulties with aircraft production as one of several factors contributing to these disappointments; manufacturing delays at Boeing have negatively affected operations. In light of this news, the airline has decided to close its bases in Bellingham International Airport (WA), Cozumel International Airport (MX), Houston George Bush Intercontinental Airport (TX) and Syracuse Hancock International Airport (NY). The company also plans to reduce staffing levels by 2000 employees at year-end as part of a wider cost reduction drive, while its voluntary time off programs will be scaled back. Southwest is not alone in experiencing financial losses during Q1; American Airlines announced it had lost $312 million over the same period. However, unlike American, which expects to return to profitability by quarter two, Southwest has yet to make such a claim. The recent engine cover failure on one of its Boeing 737 aircraft – operated out of Denver International Airport (CO) and resulting in an immediate landing due to safety concerns for passengers aboard at the time- added to an already turbulent few years for plane manufacturer, Boeing. Most notably was former CEO Dave Calhoun’s departure last month. With Boeing continuing its troublesome run, Transportation Secretary Pete Buttigieg has called on any potential successor to be “100% focused” on safety and quality issues as the company moves forward from this difficult period.