Southwest Airlines, known for its unique boarding process without assigned seats, is considering changes to improve customer experience following a challenging financial quarter. CEO Bob Jordan revealed potential initiatives to revamp the airline’s seating and boarding procedures in response to evolving customer preferences.
After reporting a loss of $231 million in Q1 2024, Southwest is adjusting its growth plans and reducing its expected Boeing 737 Max 8 aircraft deliveries from 46 to 20 due to ongoing issues with Boeing. The airline is also offering voluntary time off and aims to end the year with 2,000 fewer employees to cut costs.
Despite the setbacks, Southwest posted its highest Q1 operating revenue of $6.3 billion, a 10.9% increase year over year. However, the revenue fell short of analysts’ estimates. In a bid to streamline operations, Southwest announced the discontinuation of services at several airports, including Bellingham International Airport, Cozumel International Airport, George Bush Intercontinental Airport, and Syracuse Hancock International Airport.
Furthermore, the airline plans to restructure operations in key markets like Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport. The news of these changes caused Southwest’s stock to drop by around 7% within a 24-hour period.
As Southwest Airlines navigates through financial challenges and operational adjustments, passengers can expect potential changes to the boarding process and seating arrangements in the near future.