Southwest Airlines Cuts 200 Weekly Flights from Major Airport
- Southwest Airlines will reduce its weekly flights from Atlanta from 567 to 361 starting in April.
- The airline is also ending its open seating policy, requiring passengers to pay a fee to select seats.
- These changes are part of a strategy to restore profitability amid pressure from investors and competition.
Southwest Airlines is set to reduce its flight operations significantly in Atlanta, cutting nearly a third of its weekly flights from 567 to 361 starting in April. This decision follows a warning from the airline about the need for difficult choices to restore profitability amid pressure from Elliott Investment Management, a hedge fund that has acquired a 10% stake in the company. The cuts will also lead to the elimination of over 300 pilot and flight attendant positions, although no job losses are expected as staff will be relocated to other hubs. In addition to the flight reductions, Southwest has announced the end of its long-standing open seating policy, which has been in place for 50 years. Passengers will now be required to pay a fee to select their seats in advance, a move that aligns with industry trends adopted by competitors like Delta and United Airlines. This shift is part of a broader strategy to enhance revenue streams, particularly in light of Elliott's demands to eliminate the airline's 'bags fly free' policy. The airline's management is under pressure to adapt its business model to improve financial performance, especially after drastic changes earlier this year, including the termination of flights to four airports and the layoff of 2,000 employees. The upcoming investor day in Dallas is expected to reveal further plans from CEO Bob Jordan aimed at restoring long-term profitability, a goal that has become increasingly critical post-pandemic. As airlines continue to capitalize on ancillary revenue, the pressure on Southwest to follow suit is mounting. A recent report highlighted that major airlines generated $33.3 billion from baggage fees in the previous year, underscoring the financial potential of such changes in policy.