👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Southwest Airlines cuts flights to fix operational challenges

Published 08/27/2021, 12:26 AM
Updated 08/27/2021, 12:50 AM
© Reuters. FILE PHOTO: A Southwest Airline Boeing 737 MAX 8 aircraft lands at Victorville Airport in Victorville, California, U.S., March 26, 2019.  REUTERS/Mike Blake
LUV
-
AAL
-

CHICAGO (Reuters) - Southwest Airlines (NYSE:LUV) will run fewer flights through the end of the year in a bid to fix issues that disrupted operations this summer https://www.reuters.com/business/aerospace-defense/southwest-cancels-hundreds-flights-after-computer-related-stoppage-2021-06-16 and led to flight delays and cancellations.

The low-cost carrier on Thursday said it will reduce an average of 27 flights a day from Sept. 7 through Oct. 6 and cut 162 flights a day from Oct. 7 through Nov. 5.

It plans to adjust flight schedules in November and December as well, but said it would protect holiday bookings.

"We're confident these adjustments will create a more reliable travel experience," Southwest Airlines CEO Gary Kelly said in a statement.

The cuts are on top of its recent reductions in response to slower bookings and increased cancellations due to the spread of the Delta variant of the coronavirus.

Southwest had added more flights to its schedule to capitalize on a recovery in air travel and gain market share. However, like most in the sector, it has struggled to keep up, grappling with staff shortages.

Both American Airlines (NASDAQ:AAL) and Southwest had to cancel summer flights due to the crunch, bad weather and less network flexibility. Now they are recalling crews and resuming hiring.

© Reuters. FILE PHOTO: Air travelers wear face masks waiting to board a Southwest Airlines flight as the spread of coronavirus disease (COVID-19) continues, at Oakland International airport in Oakland, California, U.S., April 9, 2020. REUTERS/Shannon Stapleton

The Dallas-based airline said it was "aggressively" hiring.

To deal with staff crunch, Southwest is recalling employees, who are on voluntary leave. The company expects to have all of those employees back by the end of the year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.