Southwest Airlines announced it will stop flights to and from Houston's George Bush Intercontinental Airport following a first-quarter loss and dealing with a delay in getting new Boeing planes.

What you need to know

The airline announced its departure from IAH in an April 25 news release.
  • All flights to the airport will stop Aug. 4.
  • Southwest will continue to fly to Houston's Hobby Airport.
  • The airline will also stop flying to three other airports, including Cozumel, Mexico; Syracuse, New York; and Bellingham, Washington.
  • Capacity will be reduced in Atlanta and Chicago.
Bob Jordan, president and CEO of Southwest Airlines, said the cuts are intended to address the airline's "financial underperformance," which was shared in its report from the first quarter of this year.

First quarter results are from Jan. 1-March 31.
  • The company lost $231 million in the first quarter.
  • The net loss, excluding special items, was 36 cents per share.
  • Revenue rose in the first quarter to $6.3 billion but was under the forecast $6.42 billion.
"While it is disappointing to incur a first-quarter loss, we exited the quarter with healthy profits and margins in the month of March," Jordan said. "We are focused on controlling what we can control, and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations."

A closer look


According to the news release, Southwest Airlines' decision to stop flying out of the four airports is also due to delays in getting new planes from Boeing. Southwest is an all-Boeing fleet.

The U.S. Federal Aviation Administration barred Boeing in January from increasing production of the 737 MAX following the Jan. 5 incident when the door of an Alaska Airlines 737 MAX airplane came off during ascent.

FAA Administrator Mike Whitaker said the administration would not agree to any requests from Boeing for an expansion in production or approve additional production lines until it is satisfied with quality control issues.

Boeing will push back a rate increase from 47 jets per month from August to January.


"Achieving our financial goals is an immediate imperative," Jordan said. "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."

Also of note

Southwest Airlines will also slow hiring and offer voluntary time-off programs for employees and is expecting to end 2024 with approximately 2,000 fewer employees compared to the end of 2023.