Southwest Airlines is well known for its chaotic boarding process, thanks to the company’s policy of not assigning seats to passengers, but that may soon change.
The airline’s CEO, Bob Jordan, said this on Thursday CNBC about potential changes coming to the airline after a rough first-quarter 2024 earnings report that expects the airline to cut growth plans after posting a loss of $231 million.
“We’re looking at new initiatives, things like how we sit and board our plane,” Jordan told the outlet. “Customer preferences change over time.”
Related: Southwest Airlines makes big operational changes after 2024 financial report
Due to ongoing problems with Boeing, Southwest said Thursday that it now expects to receive only 20 Boeing 737 Max 8s compared to the 46 initially expected.
In an effort to cut costs, the airline is offering voluntary furloughs and expects to end 2024 with 2,000 fewer employees than at the end of 2023.
“Recent news from Boeing regarding additional delays in aircraft delivery presents significant challenges for both 2024 and 2025,” Jordan said in a company statement. “We are reacting and replanning quickly to mitigate operational and financial impacts while maintaining reliable and reliable flight schedules for our customers.”
However, the airline still amassed $6.3 billion in operating revenue in the first quarter, the highest first-quarter operating revenue in company history and a 10.9% year-over-year increase, though not yet estimated from analysts’ estimates.
Related: Southwest Airlines debuts new ‘slim’ seats, without video screens
Southwest also announced it will no longer operate at a number of airports starting Aug. 4, including Bellingham International Airport, Cozumel International Airport, Houston George Bush Intercontinental Airport and Syracuse International Airport Hancock.
The airline will also “significantly restructure other markets,” including capacity reductions at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.
Southwest Airlines fell about 7% in a 24-hour period on Thursday afternoon’s earnings report news.