Southwest Airlines, a major player in U.S. aviation, is pulling out of four key airports and scaling back its workforce as part of a cost-cutting strategy amid ongoing financial challenges. The airline, which reported a $231 million loss in the first quarter of 2024, announced it would cease operations at Houston’s George Bush Intercontinental Airport, Cozumel International Airport in Mexico, Bellingham International Airport in Washington, and Syracuse Hancock International Airport in New York.
This move, effective from August 4, 2024, marks a significant shift for Southwest, which has long been known for its expansive domestic network. The decision comes as the airline grapples with lower-than-expected revenue and delays in aircraft deliveries from Boeing, forcing the company to reduce its growth plans.
In addition to shutting down these operations, Southwest is also reducing its presence at major hubs like Atlanta’s Hartsfield-Jackson and Chicago O’Hare. The company has indicated that it will cut back on hiring, offering voluntary time-off programs to avoid widespread layoffs, but it still expects its workforce to shrink by about 2,000 employees by year’s end.
The closures have sent shockwaves through the affected communities. In Houston, for example, the end of Southwest’s services at Bush Intercontinental is particularly impactful, as the airline had only recently returned to the airport in 2021 after a 16-year hiatus.
Southwest’s CEO, Robert Jordan, emphasized the need to take “swift action” to address financial underperformance, acknowledging the challenges posed by the current economic climate and operational setbacks. The airline’s exit from these airports is expected to have broader economic repercussions, particularly in terms of job losses and reduced air service in the affected regions.
