Southwest Cuts Hiring Amidst Boeing Delays, American Airlines Posts Loss

Southwest Airlines Cuts Hiring, Drops 4 Airports Amidst Boeing Delays

- Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing. - The airline reported a first-quarter loss of $231 million, and said it expects to end the year with 2,000 fewer employees than it had at the start of the year. - Southwest will also stop flying to Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston.

American Airlines Posts 1Q Loss as Labor Costs Rise

- American Airlines also reported a first-quarter loss, of $312 million. The airline said it expects to return to profitability in the second quarter, and post earnings between $1.15 and $1.45 per share. - Labor costs rose 18% in the first quarter, or nearly $600 million. The airline said it expects to take steps to reduce costs in the future. - American is less impacted by Boeing's problems because the airline had already received hundreds of new planes in recent years.

Impact of Boeing Delays on Airlines

- Boeing is struggling with slower production since a door plug blew out of an Alaska Airlines Max 9 in January. - Southwest said it expects to get only 20 new 737 Max 8 jets from Boeing this year, down from the 46 it expected just a few weeks ago. - American has ordered Boeing Max 10s, a larger model that has not yet been certified by the Federal Aviation Administration.