Southwest Airlines and American Airlines are facing financial challenges as they grapple with delays in receiving new planes from Boeing.
Southwest Airlines has announced that they will be limiting hiring and halting flights to four airports due to financial underperformance. The airline reported a loss of $231 million in the first quarter and plans to cut 2,000 jobs through attrition. The company is also looking to reduce flights at certain airports as a result of Boeing’s slower production schedule, which is impacting Southwest’s fleet plans. Southwest is expected to receive fewer new planes than originally anticipated.
Similarly, American Airlines reported a first-quarter loss of $312 million, citing rising labor costs and delays in receiving Boeing jets. However, the airline expects to return to profitability in the second quarter and anticipates earnings between $1.15 and $1.45 per share.
Despite the setbacks, both Southwest and American Airlines say that their customers are not overly concerned about Boeing’s safety issues. This has not affected their decision to continue flying Boeing planes.
As the airlines navigate these challenges, they are working to manage their finances and operations in order to maintain their services and keep customers flying. Stay tuned for more updates on how Southwest and American Airlines are addressing these issues.
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