DALLAS (AP) — 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.
Both Southwest and American Airlines reported first-quarter losses Thursday. Demand for travel remains strong, including among business flyers, but airlines are dealing with higher labor costs, and delays in getting new aircraft from Boeing are limiting their ability to add more flights.
Southwest said it lost $231 million. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance," including by slowing down hiring and asking employees to take time off.
The Dallas-based carrier said it expects to end this year with 2,000 fewer employees than it had at the start of the year.
In August, Southwest will stop flying to four airports: Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport. Southwest hasn't left an airport since 2019, when it pulled out of Newark, New Jersey, and consolidated its New York City-area flying at LaGuardia Airport.
Southwest will also trim flights in Atlanta and at O’Hare Airport, which augments the airline's main Chicago service at Midway Airport.
The moves will help the airline focus on more profitable locations and deploy a fleet of planes that will be smaller than it had planned. 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. It will offset some of the shortage by retiring fewer planes.
Boeing is struggling with slower production since a door plug blew out of an Alaska Airlines Max 9 in January, and that is frustrating its airline customers.
Dallas-based Southwest said that its loss, after excluding special items, was 36 cents per share. That was slightly worse than the loss of 34 cents per share that Wall Street expected.
Revenue rose to $6.33 billion, below analysts' forecast of $6.42 billion.
American said it lost $312 million as labor costs rose 18%, or nearly $600 million. The airline said it expects to return to profitability in the second quarter — a busier time for travel — and post earnings between $1.15 and $1.45 per share. Analysts expect $1.15 per share, according to a FactSet survey.
The first-quarter loss amounted to 34 cents per share excluding special items, which was worse than the loss of 27 cents per share forecast by analysts.
Revenue was $12.57 billion.
CEO Robert Isom said American is less impacted by Boeing's problems because the airline had already received hundreds of new planes in recent years. The airline said eight Boeing jets it expected to get won't show up this year as planned. American has ordered Boeing Max 10s, a larger model that has not yet been certified by the Federal Aviation Administration, but those planes are not due until 2028.
“I've talked to everyone at Boeing that I can possibly address and the message is the same: Get your act together,” Isom said on a call with analysts and reporters. “It starts with producing quality products one at a time off the assembly line ... I can't tell you if they're making progress or not.”
American has had no problem getting new, smaller regional jets from Embraer. Isom said the Brazilian manufacturer has been “incredibly reliable.”
Shares of Southwest fell more than 7% in midday trading, while American was down 1%.
FILE - An American Airlines jetliner waits on a runway for departure from Denver International Airport Friday, Sept. 1, 2023, in Denver. American Airlines reports earnings on Thursday, April 25, 2024. (AP Photo/David Zalubowski, File)
FILE - A line of Southwest Air Boeing 737 jets are parked near the company's production plant while being stored at Paine Field Friday, April 23, 2021, in Everett, Wash. Southwest Air reports earnings on Thursday, April 25, 2024. (AP Photo/Elaine Thompson, File)
KANSAS CITY, Mo. (AP) — Nathaniel Lowe had four hits and two RBIs, and the Texas Rangers beat the Kansas City Royals 15-4 on Saturday night.
Lowe went 4 for 6 one night after going hitless in four at bats in Texas' 7-1 loss. It was his first four-hit game since last July 14.
“I guess it was just my turn in the grand pendulum of the swing of baseball," Lowe said. “It was great to have so many guys contribute. We got smoked last night, so it was good to come back tonight.”
Adolis García, Evan Carter and Travis Jankowski also drove in two runs each. Carter scored on a wild pitch after a two-run triple in the third inning. Garcia extended his hitting streak to six games, and Carter had two hits to extend his hit streak to five games.
The Rangers totaled a season-high 17 hits and set a season-high in runs against the team entering the game with the highest run differential in the majors.
Texas had three three-run innings and a five-run ninth to hand Kansas City its worst loss of the season. Two-runs scored on a wild pitch by Colin Selby and a throwing error to third base on the same play to cap a three-run seventh. Joe Smith, Jankowski, Marcus Semien, Leody Taveras and Ezequiel Duran had RBIs in the ninth.
“It was good to see everyone do something to help in the cause," Texas manager Bruce Bochy said. ”We got shut down the night before the guys came out and put together great at-bats it is good for their confidence. ... Everyone did something tonight."
Dane Dunning pitched 4 2/3 innings, giving up two runs and four hits. Dunning had limited the Royals to just one hit through the first four innings.
Josh Sborz (1-0) pitched one inning of relief to get the win.
Michael Wacha (1-4) pitched a season-low 3 2/3 innings, allowing a season-high seven runs and nine hits with one walk and three strikeouts.
“Obviously looked like some missed locations tonight," Royals Manager Matt Quatraro said. "You have to tip your cap to them as well.”
Hunter Renfroe put the Royals on the board with a two-run single to left field with two outs in the fifth. Bobby Witt Jr. recorded his 11th stolen base of the season, which leads the American League.
Vinnie Pasquantino and Garrett Hampson each drove in a run, and Michael Massey had three hits to extend his hitting streak to seven games.
TRAINER’S ROOM
Rangers: Wyatt Langford exited the game in the fifth inning with right hamstring tightness. Langford was 0 for 3.
Royals: RHP Alec Marsh (right elbow contusion) is scheduled to make a rehab start with Triple-A Omaha on May 5. The Royals put Marsh on the 15-day injured list on April 25, making him eligible to return on May 10.
UP NEXT
Jon Gray (1-1, 2.48 ERA) will start the series finale for Texas. Daniel Lynch IV (0-0, 0.00 ERA) will make his season debut for Kansas City.
AP MLB: https://www.apnews.com/hub/MLB
Kansas City Royals pitcher Michael Wacha delivers to a Texas Rangers batter during the first inning of a baseball game in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Kansas City Royals' Nelson Velázquez (17) is congratulated at home plate by Kyle Isbel (28) after scoring off a two-run single by Hunter Renfroe (16) during the fifth inning of a baseball game against the Texas Rangers in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Texas Rangers pitcher Dane Dunning delivers to a Kansas City Royals batter during the first inning of a baseball game in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Texas Rangers third baseman Josh Smith catches a popup from Kansas City Royals' MJ Melendez during the third inning of a baseball game in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Kansas City Royals starting pitcher Michael Wacha (52) hands the ball to manager Matt Quatraro, left, as he is taken out of the baseball game during the fourth inning against the Texas Rangers in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Texas Rangers' Jonah Heim (28) celebrates with Evan Carter, right, after scoring off a Nathaniel Lowe single during the fourth inning of a baseball game against the Kansas City Royals in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Texas Rangers Adolis García hits an RBI single during the fourth inning of a baseball game against the Kansas City Royals in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
Texas Rangers' Nathaniel Lowe watches his two-run single during the fourth inning of a baseball game against the Kansas City Royals in Kansas City, Mo., Saturday, May 4, 2024. (AP Photo/Colin E. Braley)
