ATLANTA- Dallas-based carrier Southwest Airlines (WN) is set to significantly reduce its presence in Atlanta, slashing over 300 crew positions and cutting its gate count by nearly 40%.
This move revealed in a company memo obtained by CNBC, comes on the eve of Southwest’s investor day.
Southwest Slashes Atlanta Flights
The airline will eliminate up to 200 flight attendants and 140 pilot positions for the April 2025 bid month. While not laying off staff, affected crew members will likely need to relocate to maintain their positions.
Southwest’s gate presence at Atlanta’s Hartsfield-Jackson International Airport (ATL) will shrink from 18 to 11 gates next year, according to a pilots’ union memo.
The company cites the financial necessity for these changes. “We simply cannot afford continued losses and must make this change to help restore our profitability,” Southwest stated in its memo. The airline emphasized that the decision does not reflect employee performance.
This announcement follows recent warnings from Southwest’s COO about impending “difficult decisions” to boost profits. It also comes amid mounting pressure from activist investor Elliott Investment Management.
These cuts represent the latest in a series of significant changes for Southwest. In July, the airline announced plans to abandon its longstanding open seating policy and introduce extra legroom options, marking the most substantial shifts in its 50-plus years of operation.
As Southwest grapples with profitability challenges, these moves signal a departure from its traditional operating model. The reduction in Atlanta, a major hub for rival Delta Air Lines (DL), underscores the competitive pressures facing the airline industry.
Rejects Elliot’s Request for CEO Change
Southwest Airlines has issued a firm response to Elliott Investment Management L.P.’s open letter, rejecting calls for immediate leadership changes. The airline’s board reaffirmed its support for CEO Bob Jordan, stating he is crucial to executing the company’s transformation strategy.
Elliott, holding an 11 percent economic interest in Southwest, announced plans to call a special shareholder meeting, aiming to overhaul the airline’s leadership. The investment firm criticized Southwest’s “chaotic series of defensive actions” and accused the company of obstructing necessary leadership changes.
Southwest countered these claims, asserting that Elliott has failed to engage constructively and is deliberately disrupting the upcoming Investor Day scheduled for September 26.
The airline warned that ceding board control to Elliott and its director candidates would pose a “catastrophic risk,” especially given Elliott’s lack of concrete improvement proposals.
Further, the airline accused Elliott of predetermining its position without engaging with CEO Jordan or considering the company’s plans. Southwest alleges that Elliott has remained entrenched in its demands for a board supermajority and immediate CEO replacement.
In response to Elliott’s threat of a special meeting, Southwest has initiated preparatory steps, including notifying the New York Stock Exchange (NYSE) of potential record dates. This move ensures the airline’s readiness for various scenarios and compliance with special meeting obligations.
Schedule Update
Southwest Airlines has extended its flight schedule through June 4, 2025, unveiling significant expansions in Nashville and new overnight flights from Hawaii. The airline continues to invest in its network, offering customers more travel options through the Memorial Day weekend.
Following the May 1 opening of its newest Flight Crew base in Nashville, Southwest is ramping up service in the Music City. The airline will launch new routes from Nashville to Albuquerque, Albany, Jackson, Memphis, Providence, and Tulsa on April 8, 2025. This expansion marks Southwest’s first intra-Tennessee service.
The Nashville expansion will boost Southwest’s presence to a record 174 Sunday departures in April and May 2025. The Albuquerque route revival comes after a 37-year hiatus, while the Providence connection resumes after a 14-year break.
Southwest is set to introduce five new overnight flights from Hawaii to the U.S. mainland, starting April 8, 2025. These redeye services will enhance connectivity between the Hawaiian Islands and numerous Southwest destinations.
The new daily overnight routes include:
- Honolulu to Las Vegas and Phoenix
- Kona (Hawaii Island) to Las Vegas
- Kahului (Maui) to Las Vegas and Phoenix
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