A Southwest Airlines aircraft takes off from Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, USA, on Friday, July 12, 2024.
Elijah Nouvelage | Bloomberg | Getty Images
Southwest Airlines plans to reduce flights to and from Atlanta next year, cutting more than 300 pilot and flight attendant jobs, according to a company memo seen by CNBC.
The changes come a day before Southwest's investor day, when executives will outline the company's plans to cut costs and increase revenue amid increasing pressure from activist investor Elliott Investment Management.
Southwest told employees that it would not close its crew base in Atlanta. Instead, it would lay off up to 200 flight attendants and up to 140 pilots for the application month of April 2025.
While the airline is not laying off employees, they will likely have to apply for job opportunities in other cities.
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According to a separate memo from the pilots' union, Southwest will reduce its presence in Atlanta from 18 to 11 gates next year.
Starting in April next year, 21 cities will be served from Atlanta, compared to 37 in March, the airline said.
“While we try everything we can before making difficult decisions like this, we simply cannot afford continued losses and must make this change to restore our profitability,” Southwest said in its memo. “This decision in no way reflects on the performance of our employees and we are proud of the hospitality and efforts they have and will continue to provide for our customers in ATL.”
Unions representing Southwest pilots and flight attendants have sharply criticized the airline for cutting staff and services.
“Southwest Airlines management is failing its employees and impacting customers. Management continues to make decisions that lack complete transparency, lack adequate communication with union leadership and, most alarmingly, lack the one thing that made the airline great: its employees,” said Bill Bernal, president of the flight attendants union.
A Southwest spokesperson confirmed the changes and said the airline will “continue to optimize its network to meet customer demand, optimize its fleet utilization and maximize revenue opportunities.”
Travelers check in at a Southwest counter at Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, USA, on Tuesday, July 23, 2024.
Elijah Nouvelage | Bloomberg | Getty Images
The airline had already withdrawn from certain airports, some of which it had experimented with during the pandemic, to focus on more profitable services.
Southwest is not only faced with changing booking patterns and oversupply in parts of the US market, but also with delays of aircraft from Boeingwhose not yet certified 737 Max 7 aircraft are years behind schedule
The airline's COO, Andrew Watterson, told staff last week that “difficult decisions” had to be made to increase profits.
The reduction in Atlanta, the world’s busiest airport and Delta Air Lines The home base is the airline's latest development. In July, Southwest announced it would abandon open seating on its planes and introduce more legroom – the biggest changes in the airline's more than 50-year history.
Also on Wednesday, Southwest released an expanded schedule and is selling tickets through June 4. In addition to the planned cuts in Atlanta, the airline announced it would expand service to and from Nashville, Tennessee. It will also offer overnight flights from Hawaii starting April 8. This includes service from Honolulu to Las Vegas and Phoenix, from Kona, Hawaii, to Las Vegas and from Maui, Hawaii, to Las Vegas and Phoenix.
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