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Southwest Airways is well-known for its chaotic boarding course of, due to the corporate’s coverage of not having passenger seat assignments — however that would quickly change.
On Thursday, the airline’s CEO, Bob Jordan, informed CNBC about potential adjustments coming to the airline after a tough Q1 2024 earnings report that has the airline slashing progress plans after posting a loss of $231 million.
“We’re trying into new initiatives, issues like the way in which we seat and board our plane,” Jordan informed the outlet. “Buyer preferences do change over time.”
Associated: Southwest Airways makes massive operational adjustments after 2024 monetary report
As a consequence of ongoing hassle with Boeing, Southwest mentioned on Thursday that it now plans to solely obtain 20 Boeing 737 Max 8 plane versus the 46 it initially anticipated.
In an try to chop prices, the airline is providing voluntary time without work and expects to finish 2024 with 2,000 fewer staff than it did on the finish of 2023.
“The latest information from Boeing relating to additional plane supply delays presents vital challenges for each 2024 and 2025,” Jordan mentioned in an organization launch. “We’re reacting and replanning rapidly to mitigate the operational and monetary impacts whereas sustaining reliable and dependable flight schedules for our Clients.”
Nonetheless, the airline nonetheless put up $6.3 billion in Q1 working income, the best Q1 working income within the firm’s historical past and a ten.9% improve 12 months over 12 months, although it nonetheless missed analysts’ estimates.
Associated: Southwest Airways Debuts New ‘Skinny’ Seats, No Video Screens
Southwest additionally introduced that it could not function in a slew of airports efficient August 4, together with Bellingham Worldwide Airport, Cozumel Worldwide Airport, Houston’s George Bush Intercontinental Airport, and Syracuse Hancock Worldwide Airport.
The airline may also “considerably restructure different markets,” together with capability reductions in Hartsfield-Jackson Atlanta Worldwide Airport and Chicago O’Hare Worldwide Airport.
Southwest Airways was down round 7% in a 24-hour interval upon the information of the earnings report as of Thursday afternoon.
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