Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Southwest cuts growth plans, warning effect of Boeing airplane delays will last into 2025

by April 26, 2024
April 26, 2024
Southwest cuts growth plans, warning effect of Boeing airplane delays will last into 2025

Southwest Airlines on Thursday posted a wider loss for the first quarter than the same period last year and warned that Boeing’s airplane delays will hamper its growth into 2025.

The airline expects to grow capacity 4% this year, down from a plan to expand 6%. For the second quarter, it forecast growth of 8% to 9% and said revenue would be down as much as 3.5%.

Shares of Southwest were down nearly 9% in morning trading.

The airline said in a quarterly filing that it now expects to receive only 20 Boeing 737 Max 8 planes, down from its previous forecast of 46 of them. The carrier will now delay retiring some of its older Boeing planes and is cutting costs, including by offering staff voluntary time off. Southwest said it expects to end the year with 2,000 fewer employees than it had at the end of 2023.

It will also shut down operations at some airports, including in Syracuse, New York; Bellingham International Airport in Washington; Cozumel International Airport; and Houston’s George Bush Intercontinental.

“Achieving our financial goals is an immediate imperative,” CEO Bob Jordan said in an earnings release. “The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our Customers.”

The Dallas-based carrier operates an all-Boeing 737 fleet and is acutely affected by Boeing’s aircraft delays stemming from its safety and quality crises.

The carrier had previously warned that slower Boeing deliveries were hampering its growth.

Here is how Southwest performed in the first quarter compared with Wall Street expectations, according to consensus estimates from LSEG:

Southwest lost $231 million, or 39 cents a share, in the first three months of the year, compared with a loss of $159 million, or 27 cents a share, a year earlier when it was dealing with the aftermath of its holiday meltdown.

Adjusting for one-time items, including costs related to labor contracts and fuel, Southwest lost $218 million, or 36 cents a share.

Revenue rose almost 11% to $6.33 billion, slightly below analysts’ estimates as compiled by LSEG.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
College protesters want their schools to divest from ties to Israel. Here’s what that means.
next post
Red Lobster seeks a buyer as it looks to avoid bankruptcy filing

Related Posts

PepsiCo buys prebiotic soda brand Poppi for nearly...

March 18, 2025

Why the Fed’s keeping rates higher for longer...

April 25, 2024

Nvidia to report earnings amid infrastructure spending, DeepSeek...

February 27, 2025

Boeing urges inspections of 737 Max planes for...

January 3, 2024

Meta’s head of AI research announces departure

April 2, 2025

Wayfair to lay off 13% of workforce, affecting...

January 21, 2024

Skydance bid for Paramount hinges on Shari Redstone...

May 4, 2024

Costco cracks down on sharing membership cards

June 28, 2023

Musk says he’s sending Starlink tech to FAA...

March 3, 2025

Federal Reserve credits Taylor Swift with boosting hotel...

July 15, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The NASDAQ 100, On The Brink Of A Breakout, Needs Help From This Group

    • Tech 5: OpenAI/Microsoft Talks Get Tense, SoftBank Floats Arizona Robotics Hub

    • Editor’s Picks: Silver Price Hits 13 Year High, Gold Takes a Breather

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    Categories

    • Business (1,259)
    • Investing (2,585)
    • Politics (3,699)
    • Stocks (1,670)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved