Southwest Airlines is known for its chaotic boarding process, thanks to the company's policy of not having passenger seat assignments — but that may soon change.
Thursday, the airline's CEO, Bob Jordan, said CNBC about possible changes coming to the airline after a estimated first quarter 2024 revenue report that has airline growth plans to decrease AFTER posting a loss of 231 million dollars.
“We're looking for new initiatives, things like how we sit and board our airplanes,” Jordan told the newspaper. “Customer preferences change over time.”
Connected: Southwest Airlines makes major operational changes after 2024 financial report
Because of the ongoing problems with Boeing, Southwest said Thursday that it now plans to take delivery of only 20 Boeing 737 Max 8 jets compared to the 46 originally expected.
In an effort to cut costs, the airline is offering voluntary layoffs and expects to end 2024 with 2,000 fewer employees than at the end of 2023.
“Recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” Jordan said in a company announcement. “We are reacting and replanning quickly to mitigate operational and financial impacts while maintaining reliable and dependable flight schedules for our customers.”
However, the airline still racked up $6.3 billion in first-quarter operating income, the highest first-quarter operating income in the company's history and a 10.9% year-over-year increase, though it still missed analysts' estimates.
Connected: Southwest Airlines debuts new 'slim' seats, without video screens
Southwest also announced it would no longer operate at a host of airports starting Aug. 4, including Bellingham International Airport, Cozumel International Airport, Houston George Bush Intercontinental Airport and Syracuse Hancock International Airport.
The airline will also “significantly restructure other markets,” including reducing capacity at Hartsfield-Jackson Atlanta International Airport and Chicago O'Hare International Airport.
Southwest Airlines was down about 7% in a 24-hour period with earnings report news since Thursday afternoon.