Southwest Airlines closes operations at multiple airports amid financial challenges

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Global Industry News

Southwest Airlines closes operations at multiple airports amid financial challenges

Policy

Bob Jordan President, Chief Executive Officer, & Vice Chairman of the Board of Directors of Southwest Airlines | Southwest Airlines

By Sky Industry News

Feb 3, 2025

Southwest Airlines has announced the closure of operations at several airports, including one in New York, citing reduced demand, slower revenue growth, and increased operating costs. The airline received less than half of its expected new aircraft from Boeing last year. As the exclusive operator of the Boeing 737 type, Southwest depends on a steady supply of new planes.

Bob Jordan, CEO of Southwest Airlines, highlighted challenges due to aircraft delivery delays: "The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025."

The airline will cease services to Syracuse, New York; Bellingham, Washington; Houston-IAH, Texas; and Cozumel, Mexico. This decision led to the layoff of about 2,000 employees as part of cost-cutting measures. Previously prominent in New York City area airports like Newark Liberty International (EWR) and LaGuardia (LGA), Southwest stopped serving EWR in 2019 due to declining demand and high costs.

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According to Cirium's data, Southwest started scheduled services at EWR in March 2021 with multiple daily flights from two airports. In April 2011 alone, it offered up to five daily round-trip flights between St. Louis Lambert International Airport (STL) and Newark.

In April 2012, Southwest flew over a thousand one-way flights to and from EWR but began reducing its presence by early 2019 due to rising costs and lower demand. By November that year, it had completely withdrawn from EWR.

The grounding of the Boeing 737 MAX significantly impacted Southwest's operations as it relied heavily on this model. Gary C. Kelly stated: "Based on the extensive delays in returning the MAX to service...we are taking necessary steps to mitigate damages." Consequently, they ceased operations at Newark Liberty International Airport in November 2019 but continue servicing LaGuardia (LGA).

Kelly also expressed gratitude towards their Newark employees: "I am grateful to our wonderful Newark Employees...and will be given an opportunity to relocate."

Sky Industry News