A Southwest Airlines flight takes off from Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, USA, on Friday, July 12, 2024.
Elijah Novel | Bloomberg Getty Images
Southwest Airlines plans to reduce service to and from Atlanta next year, cutting more than 300 pilot and flight attendant positions, according to a company memo seen by CNBC.
The change comes a day before Southwest’s investor day, when executives will map out the company’s plan to cut costs and grow revenue as pressure mounts from activist investor Elliott Investment Management.
Southwest told staff it is not closing its crew base in Atlanta. However, it will reduce staff by up to 200 flight attendants and 140 pilots, for the April 2025 bid month.
Southwest didn’t let the crew go either, but they probably had to offer jobs from other cities.
Southwest will reduce its Atlanta presence to 11 gates next year from 18, according to a separate memo from the pilots’ union.
“While we try everything we can before making difficult decisions like this, we cannot afford to continue to incur losses and must make these changes to restore profitability,” Southwest said in a memo. “This decision does not reflect our Employee’s performance, and we are proud of the Hospitality and efforts we have made and will continue to make with our Customers at ATL.”
Travelers check in at the Southwest counter at Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, U.S., Tuesday, July 23, 2024.
Elijah Novel | Bloomberg Getty Images
Southwest also released an expanded schedule, selling tickets through June 4. In addition to cutting plans in Atlanta, the operator plans to boost service to and from Nashville, Tennessee. It will also begin offering overnight flights from Hawaii, beginning April 8. That includes service from Honolulu to Las Vegas and Phoenix; Kona, Hawaii, to Las Vegas; and Maui, Hawaii, for Las Vegas and Phoenix.
A Southwest spokesperson confirmed the change and said the carrier will “continue to optimize its network to meet customer demand, best utilize its fleet, and maximize revenue opportunities.”
Southwest has exited certain airports, some of which it experimented with during the pandemic to focus on more profitable services.
Southwest is not only facing changing order patterns and oversupplied parts of the US market but delayed flights from Boeingthat the 737 Max 7 aircraft has not been certified for many years
The airline’s COO told staff last week it had to make “difficult decisions” to boost profits.
Reduction in Atlanta, the busiest airport in the world and Delta Air Lines home hub, is the latest development for the airline. In July, Southwest announced plans to get rid of open seating and offer extra legroom on its planes, the biggest change in more than half a century of flying.
