Southwest Airlines has revised its full-year outlook amid manufacturing issues with Boeing aircraft.
The Dallas-based carrier said it plans to “reduce capacity” and “re-optimize schedules” for the back half of 2024 as a result of Boeing’s continued challenges and current certification status, according to a recent regulatory filing with the Securities and Exchange Commission (SEC).
“The Company continues to focus on its efforts to drive efficiencies to offset overall inflationary cost pressures,” said Southwest in the regulatory document. “To that end, and especially in light of further second half 2024 planned capacity reductions … the Company has halted hiring classes for multiple workgroups, including Pilots and Flight Attendants.”
Due to the growing number of safety issues onboard Boeing airplanes, the aerospace manufacturer advised Southwest to expect substantial delays and fewer aircraft deliveries in 2024.
“This could last for several years financially for Southwest,” said Ron McCallum, a personal injury expert and airline pilot, per Fox 4 KDFW. “It’s another hit. It’s another negative outcome that the public’s going to see.”
Despite Southwest’s revised expectations of a net loss in the first quarter of 2024, the company still expects a return to profitability in March, according to the filing.
The Dallas Express contacted Southwest Airlines and McCallum for a statement on Boeing’s manufacturing blunders but did not immediately hear back by publishing.
McCallum said the problem ultimately boils down to the repeated manufacturing failures, which he highlights are “outside Southwest’s control.”
Over the past few months, the Arlington, Virginia-based manufacturing company has faced significant backlash for allegedly cutting costs, cutting corners, and risking people’s safety. Some have questioned whether the company’s prioritization of DEI (“diversity, equity, and inclusion”) initiatives has played a role in the company’s quality control issues, as reported by The Dallas Express.
Allegedly, to avoid responsibility for an incident on an Alaska Airlines flight earlier this year, Boeing overwrote surveillance footage from the repair facility where the Alaska Airlines door plug was reinstalled ahead of a midair blowout, according to a letter Wednesday from National Transportation Safety Board Chairman Jennifer Homendy to the Senate Commerce Committee.
Boeing said in a written statement that it is supporting the NTSB’s investigation “in the transparent and proactive fashion we have supported all regulatory inquiries into this accident.” It has also said it will work with employees to ensure they are able to meet manufacturing standards, as reported by DX.
