Southwest Airlines has announced plans to reduce its flights to Atlanta by about one-third next year in a move to cut costs and improve profitability. This decision comes as the airline faces pressure from a hedge fund to enhance its financial performance and increase its stock value.
The reduction in flights to Atlanta, a market where Southwest is significantly smaller compared to Delta Air Lines, will result in the elimination of over 300 jobs for pilots and flight attendants. However, affected employees will be given the opportunity to relocate within the company.
A spokesperson for Southwest stated that the airline is continuously optimizing its network to align with customer demand, maximize revenue opportunities, and make efficient use of its fleet.
Southwest is set to unveil additional changes during an investor meeting following a campaign by Elliott Investment Management to revamp the airline's leadership and reverse a decline in profits over the past three years.
The airline plans to cut 58 flights per day and reduce its presence at Hartsfield-Jackson Atlanta International Airport from 18 to 11 gates, according to the Southwest Airlines Pilots Association. The news has been met with disappointment by Atlanta-based employees.
Despite the Atlanta cutbacks, Southwest recently released its flight schedule through June of next year, which includes new routes connecting Nashville to six other cities and the introduction of five new red-eye flights from Hawaii to Las Vegas and Phoenix starting in April.
Earlier this year, Southwest exited four smaller markets and announced a hiring freeze due to financial challenges and delays in receiving new aircraft from Boeing. Additionally, CEO Robert Jordan revealed plans to assign seats to passengers and reserve a portion of seats for premium service with increased legroom.
