Provided by Simple Flying, thanks to Paul Mathis
Boeing delays impact Southwest: reduced pilot hours to avoid furloughs, overstaffing an issue. Southwest now expects less than 25% of its contracted deliveries for 2024. Network reductions are also taking place. Problems at Boeing continue to plague airlines. Today, Southwest Airlines said it will offer pilots reduced hours because Boeing delivery delays have led to overstaffing.
Anyone following the aviation industry since the beginning of 2024 knows that Boeing has been riddled with troubles that have bled over and affected several airlines. Southwest Airlines has been hit hard. As an all-Boeing 737 operator and a huge customer for the 737 MAX family, Southwest has hundreds of aircraft on order for fleet modernization and expansion. The airline’s contract with Boeing said it expected over 80 aircraft deliveries in 2024, but Southwest knew from the beginning of the year that it would not happen. It lowered its expectation to 46 aircraft and dropped that outlook by the end of the first quarter to 20.
According to an exclusive report by Reuters, Southwest plans to offer its pilots reduced hours because of overstaffing. And, of course, fewer hours means less pay. Despite the reduction, the airline does not expect to furlough any pilots, something it also avoided during the COVID-19 pandemic.
The United States Federal Aviation Administration (FAA) has requirements for pilots to continue flying, and Southwest intends to ensure those requirements are met. Though the airline is making plans, nothing concrete has been decided, and only preliminary discussions have been held with the union, the Southwest Airlines Pilots Association (SWAPA). Reuters’ report said the plan will likely take effect in September, when summer travel starts to cool off.
At the end of February, Simple Flying reported that Southwest was suspending pilot hiring at the end of March. Some pilots who had received conditional job offers (CJO) were informed they would not start training but would be called once the airline resumes hiring. According to Reuters, the airline stopped all hiring except for essential positions and will end the year with a workhorse with 2,000 fewer staff than in 2023.
During its first-quarter earnings call, Southwest announced it would reduce its workforce but had not shared any specifics. In addition to cutting jobs, the airline is offering unpaid leave to staff in the call center, ground operations, and flight attendants.
Recent troubles
Southwest recently announced it was cutting service from four airports because of aircraft shortages. On August 4, the airline will pull out of George Bush Houston Intercontinental Airport, Bellingham, Syracuse, and Cozumel. During Southwest’s first quarter earnings call, CEO Bob Jordan said,
Achieving our financial goals is an immediate imperative. The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025. We are reacting and replanning quickly to mitigate the operational and financial impacts while maintaining dependable and reliable flight schedules for our customers.
Early this week, Simple Flying reported that Southwest had made more network changes, focusing on its operations at Hartsfield-Jackson Atlanta International Airport. Sometime in the near future, the airline will reduce its number of daily departures in Atlanta from 119 to 94, though no details were given.