On Thursday, Southwest Airways and American Airways reported losses of their quarterly earnings name.
Southwest Airways mentioned it could be ceasing flights to 4 airports —Bellingham Worldwide Airport, Cozumel Worldwide Airport, George Bush Intercontinental Airport, and Syracuse Hancock Worldwide Airport — from early August after a $231 million loss within the first quarter of 2024.
Southwest Airways CEO Bob Jordan informed CNBC the choice to stop flights had “nothing to do” with Boeing’s plane supply delays. However the delays, Jordan mentioned, did damage Southwest in different methods.
“Now the Boeing delays are very painful. They trigger us to replan, they damage us on the income entrance, they trigger us to be inefficient, and we’re working all of that,” he informed CNBC on Thursday.
Moreover decreasing flights, Southwest additionally mentioned it could reduce down on hiring. The airline mentioned it expects to finish this 12 months with about 2,000 fewer staff than on the finish of 2023.
American Airways, in the meantime, posted a lack of $312 million in its first quarter amid rising labor prices.
American Airways CEO Robert Isom informed CNBC on Thursday that whereas they’ll obtain about seven fewer plane from Boeing as a result of delays, the discount in capability is not going to have a “materials impression” on the airline.
However Isom did categorical his disappointment at Boeing throughout his firm’s earnings name.
“I’ve talked to everybody at Boeing that I can presumably handle and the message is similar: Get your act collectively,” Isom informed traders on Thursday.
When requested about Isom’s remarks, Boeing pointed BI to a remark made by its CFO Brian West on March 20 on the Financial institution of America World Industrials Convention. West informed convention attendees then that Boeing was “in common, very clear communications” with their purchasers.
“Crucial factor we do is talk with them. They usually have been supportive of the whole lot we’re attempting to do to boost security and high quality for the business,” West mentioned.
Representatives for Southwest Airways and American Airways did not instantly reply to a request for remark from BI despatched exterior common enterprise hours.
Boeing has come underneath hearth not too long ago following repeated high quality management lapses. On January 5, a plug door flew off a two-month-old Boeing 737 Max 9 throughout an Alaskan Airways flight from Oregon to California.
On Wednesday, Boeing mentioned throughout its earnings name that it had burned by $3.9 billion in money within the first quarter of 2024. The corporate additionally posted a web lack of $355 million in its newest quarter.
“Close to time period, sure, we’re in a troublesome second,” Boeing CEO Dave Calhoun mentioned in a letter to staff on the identical day.
“Decrease deliveries will be tough for our clients and for our financials. However security and high quality should and can come above all else,” he continued.
