Major Airline to Terminate Service at Four Airports in U.S. and Mexico

A major airline will terminate thousands of employees and discontinue service at four transit hubs after massive Q1 losses.

After losing money in 2024’s first quarter, Southwest Airlines is slashing 2,000 employees and terminating service at four major airports, The New York Post reported.

Southwest lost $231 million in Q1 as it dealt with increased labor costs and delays in obtaining new aircraft from embattled Boeing, making it difficult to schedule additional flights at peak travel times.

To make up for the lost revenue, Southwest will terminate service at four major airports before the end of this year. The Dallas-based airline will no longer fly to Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston. Southwest will continue service to Houston’s Hobby Airport.

Boeing’s delays have also affected the airline’s plans for additional aircraft. Whereas the company previously announced it would have 814 planes by the end of 2024, Southwest now expects to have 802.

The airline’s CEO, Robert Jordan, said the decisions were made swiftly “to address our financial underperformance.” Southwest reportedly took a lost of 36 cents per share, up from an earlier estimate of 34 cents per share.

Southwest isn’t the only airline hurting right now. American Airlines also reported significant losses in Q1 totaling $312 million as a result of the 18 percent rise in labor costs. However, American expects they will return to profitability in Q2. American’s first quarter losses came to 34 cents per share, markedly higher than the 27 cents per share previously forecasted.