Current:Home > StocksSouthwest says it's pulling out of 4 airports. Here's where. -FutureFinance
Southwest says it's pulling out of 4 airports. Here's where.
View
Date:2025-04-16 22:18:31
Southwest Airlines is suspending service at some airports across the U.S. as it slows its growth, in part because of Boeing aircraft delivery delays.
The airline is set to receive just 20 of the 46 Boeing 737 Max 8 planes it was expecting in 2024, Southwest said Thursday.
The delays mean slower growth for the airline, which is looking for ways to cut costs as it reported a quarterly loss of $231 million, or 39 cents per share.
"Achieving our financial goals is an immediate imperative. The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our customers," Southwest CEO Bob Jordan said on the company's first quarter earnings call Thursday.
One cost-cutting measure includes pulling out of "underperforming markets," he said.
Southwest will end service at the following airports on August 4:
- George Bush International Airport in Houston
- Bellingham International Airport in Bellingham, Washington
- Syracuse Hancock International Airport in Syracuse, New York
- Cozumel International Airport on Cozumel island, Mexico
The carrier will also make significant changes to its operations in other markets, including cutting the number of flights at both Hartsfield-Jackson Atlanta International Airport and Chicago O'Hare International Airport.
Airlines generally withdraw from regional airports and cut unprofitable or less-profitable routes to save on labor costs, or add capacity to more profitable routes and generate more revenue.
In March, JetBlue said it was cutting unprofitable routes and exiting two U.S. cities altogether after a judge blocked its $3.8 billion bid for Spirit Airlines earlier this year. JetBlue cited limited aircraft as one driver of the cuts, which allow the airline to operate more flights on its busiest routes.
Additionally, Southwest said Thursday that it is exploring making improvements to its plane cabins and seating options. The low-cost carrier does not charge customers seat-selection fees, which have become a growing source of revenue for its competitors.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
veryGood! (37978)
Related
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Michigan 2-year-old dies in accidental shooting at home
- American life expectancy is now at its lowest in nearly two decades
- Did Damar Hamlin experience commotio cordis? What to know about the rare phenomenon
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
- 6 shot in crowded Houston parking lot after disturbance in nightclub, police say
- How Dolly Parton Honored Naomi Judd and Loretta Lynn at ACM Awards 2023
- China has stopped publishing daily COVID data amid reports of a huge spike in cases
- Jamie Foxx reps say actor was hit in face by a glass at birthday dinner, needed stitches
- 2 horses die less than 24 hours apart at Belmont Park
Ranking
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- U.S. Navy Tests Boat Powered by Algae
- Rihanna and A$AP Rocky's Baby Boy's Name Revealed
- This Top-Rated $9 Lipstick Looks Like a Lip Gloss and Lasts Through Eating, Drinking, and Kissing
- 'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
- Myrlie Evers opens up about her marriage to civil rights icon Medgar Evers. After his murder, she took up his fight.
- Today’s Climate: September 15, 2010
- CRISPR gene-editing may boost cancer immunotherapy, new study finds
Recommendation
Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
Because of Wisconsin's abortion ban, one mother gave up trying for another child
Kim Zolciak Spotted Without Wedding Ring Amid Kroy Biermann Divorce
Transcript: North Dakota Gov. Doug Burgum on Face the Nation, June 11, 2023
What do we know about the mysterious drones reported flying over New Jersey?
Obama Broadens Use of ‘Climate Tests’ in Federal Project Reviews
Hillary Clinton Finally Campaigns on Climate, With Al Gore at Her Side
Newest doctors shun infectious diseases specialty