Southwest cuts growth plans, warning effect of Boeing airplane delays will last into 2025
Publishing timestamp: 2024-04-25 12:30:52
Summary
Southwest Airlines posted a wider loss for the first quarter compared to the same period last year, citing Boeing's production slowdown as a major factor. The airline expects growth to be hampered until 2025, with plans to reduce capacity expansion and cut costs by delaying plane retirements and offering voluntary time off to staff. Shares of Southwest dropped more than 8% in afternoon trading. CEO Bob Jordan stated that achieving financial goals is an immediate imperative, and the airline is quickly reacting to mitigate operational and financial impacts. Southwest is considering significant changes to its business model, including potentially ditching its single-class cabin and open seating.
Sentiment: NEGATIVE
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Source: https://www.cnbc.com/2024/04/25/southwest-airlines-luv-earnings-q1-2024.html