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Skift Take
Just one day before its investor day, Southwest announced it would cut some of its Atlanta service, impacting around 300 pilot and flight attendant positions.
Southwest Airlines said Wednesday that it would reduce service and staff in Atlanta due to a lack of demand.
The cuts will impact around 300 pilots and flight attendants, according to CNBC. Southwest said all employees impacted by the cuts would be given the chance to transfer and the changes wouldn’t take place for at least another six months.
“We simply cannot afford continued losses and must make this change to help restore our profitability,” Southwest said in an internal memo, according to the CNBC report.
Southwest also said it plans to increase its flying to Nashville, adding six new markets to the city.
“We continue to optimize our network to meet Customer demand, best utilize our fleet, and maximize revenue opportunities,” Southwest said in a statement.
Cuts Leave Pilots and Flight Attendants Frustrated
The cuts are expected to impact 140 pilot positions and 200 flight attendant positions in Atlanta, according to unions. Southwest Airlines Pilots Association was critical of the cuts, saying they were due to “management’s inaction.”
“It is simply amazing that the airline with the strongest network in the history of our industry is now retreating in a major market because this management group has failed to evolve and innovate,” the pilots union said in a memo sent to members Wednesday morning.
Southwest plans to reveal more changes at its investor day on Thursday. The carrier has struggled this past year with aircraft delivery delays, changing consumer preferences and pressure from an activist investor. So far, Southwest has unveiled premium seating and red-eye flights as ways to boost its profitability.
The carrier’s flights also started appearing on Google Flights and Kayak, a move it had resisted for years to avoid distribution costs and to build a more loyal customer base.
Activist investor Elliott Investment Management said on Tuesday it could call a special meeting as early as next week where it could elect new members to Southwest’s board to force changes.
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