The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Business

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

by admin 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
Ring home security customers will get refunds over security-lapse claims
next post
Workers earning up to $58K a year could soon become eligible for overtime pay

Related Posts

Walmart to pay $10 million to settle lawsuit...

June 24, 2025

Argentine President Milei faces impeachment calls for promoting...

February 20, 2025

Nissan could face cost-cutting ‘carnage’ in Honda merger,...

December 25, 2024

First the token, now the swipe: NYC’s subway...

March 20, 2025

July 4 travel hitting a record thanks to...

July 5, 2024

How Delta made itself America’s luxury airline —...

June 27, 2024

Macy’s turnaround hinges on revamping some stores and...

March 7, 2025

Extreme heat is prompting higher home cooling costs....

August 1, 2024

GM to invest $625 million in joint venture...

October 18, 2024

Dow tumbles 475 points, S&P 500 suffers worst...

April 17, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Latest

    • Apple reveals complex system of App Store fees to avoid E.U. fine of 500 million euros

      June 30, 2025
    • Breakdown of NVDA’s Stock Price and S&P 500: Actionable Technical Insights

      June 30, 2025
    • Thom Tillis announces retirement from Senate after clash with Trump

      June 30, 2025
    • SCOOP: House Republican eyes bid for Thom Tillis Senate seat after Trump attack

      June 30, 2025
    • Dem delay tactic ends, debate begins on Trump’s ‘big, beautiful bill’

      June 30, 2025
    • GOP, Dem senators remain divided over Medicaid after Trump’s ‘big, beautiful bill’ vote

      June 30, 2025

    Categories

    • Business (1,272)
    • Politics (3,873)
    • Stocks (1,477)
    • Uncategorized (45)
    • World News (1,265)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 thetraderharbor.com | All Rights Reserved