On July 25, 2024, a Southwest Airlines plane took off from Hollywood Burbank Airport in Burbank, California.
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Southwest Airlines Warns employees that airlines will have to make “tough decisions” to boost profits as airlines face pressure from activists Elliott Investment Managementthe company has sought changes in the company’s leadership.
Southwest Airlines announced over the summer Hosts that have undergone major changes Grow revenue with its more than 50-year-old business model. The company plans to ditch open seating in favor of assigned seating, offering seats with more legroom, thereby commanding higher fares, and starting red-eye flights.
It also started allowing its flights to Google flights and kayak Chief Operating Officer Andrew Watterson said in a video message to employees last week that the company had changed its advertising to target more younger consumers.
“Now, that’s not enough. We also have to change our network,” Watson said in the video, a transcript of which was seen by CNBC.
“We are facing several difficult decisions. This is not about closing stations. But we need to continue to drive growth on the network to help us return to profitability,” Watson said. “So if you are personally affected, I apologize in advance.”
The airline does not plan to announce furloughs but may reduce operations in some cities and employees may be moved to other locations, according to a person familiar with the matter. The airline said it was looking to reduce costs and focus on profitable flying.
Other businesses such as JetBlue Airways have cut route Deploy aircraft this year on flights that generate higher revenue.
Southwest will provide more details about its initiatives and route changes during an investor day Thursday at its Dallas headquarters.
Eliot has Promote leadership change And criticized Southwest Airlines management for not doing enough to improve the company’s profits. Earlier this month, executive chairman and former CEO Gary Kelly said he would Step down after the airline’s shareholder meeting next year.
Southwest Airlines did not immediately comment on the employee’s news. The video was previously reported by industry blog View from the Wing.
