Southwest Airlines will be cutting jobs and ceasing operations at four airports while reducing flights from others to cut costs amid Boeing’s ongoing complications.
Southwest will cease operations at the following airports starting in August: Bellingham International Airport in Washington State, Cozumel International Airport, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport. It will also reduce flights at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.
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According to the New York Times, Southwest said it expects to receive “20 new Boeing jets this year, down from the 46 it had previously anticipated.”
“The timing of the deliveries depends on the Federal Aviation Administration, which has capped Boeing’s production while it gets quality issues under control,” noted the outlet.
Southwest Airlines also said it will cut 2,000 jobs while limiting new hires.
According to Yahoo Finance, Boeing shares have been trending downward due to its disastrous quarter performance.
“Boeing stock slid 2.8% on Wednesday after the company reported losses that were narrower than fear, but still reported negative free cash flow of nearly $4 billion as a result of the 737 Max crisis that has shaken the aerospace giant,” it noted.
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