Southwest Airlines reported a larger-than-expected quarterly loss on Thursday and said it expects to receive just 20 Boeing 737 Max 8s this year, 26 fewer than expected, as the manufacturer works to resolve problems of production.
With so few planes delivered, the 100% Boeing carrier has taken cost-cutting measures like limiting hiring, reducing service in some markets and eliminating 4 airports altogether.
The airports losing southwest service are:
Syracuse Hancock International Airport in New York
Bellingham International Airport in Washington
Cozumel International Airport in Mexico
George Bush Intercontinental Airport, Houston, Texas
Boeing’s Max 8 is a smaller version of the Max 9 that was involved in the Alaska Airlines door jam explosion, but both were affected by slowing production at Boeing after the near-disaster of January.
Southwest also said it would “significantly restructure other markets,” including reducing capacity at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.
“To improve our financial performance, we have increased our network optimization efforts to address underperforming markets,” Southwest CEO Bob Jordan said in the earnings report, noting that the impact could be continue until 2025.
“I want to sincerely thank our employees, airports and communities for all their incredible support over the years.”
None of the four airports will be left without air service after Southwest’s exit, although Bellingham, in northern Washington state near the Canadian border, will have only a few flight options.
Meanwhile, Southwest will still serve Houston from its busy Hobby hub.
Carriers including Alaska, Europe’s Ryanair and United Airlines have faced similar fallout in the Southwest.
All three expressed frustration with the reduced number of planes they will receive from Boeing this year, which will effectively slow their growth and force them to reduce flights, which could increase airfares.
This backlash prompted Boeing CEO Dave Calhoun to announce his resignation from the company effective at the end of the year.
Additionally, Boeing Chairman Larry Kellner will not run for reelection, and Boeing Commercial Airplanes CEO Stan Deal will also resign, the company said. Stephanie Pope, 30-year Boeing veteran, replaced Deal as the first woman to head the company.
The new management will have much more to deal with than just the Max crisis, given the influx of whistleblowers who have come forward with new allegations against the aircraft manufacturer.
Sam Salehpour, a veteran Boeing employee and 40-year aerospace engineer, told Senate lawmakers last week that the planemaker threatened him to keep quiet about what he saw as quality defects on Boeings. 787 and Boeing 777.
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