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Report: Southwest Airlines cutting routes, staff
Dallas-based Southwest Airlines will soon cut routes and staff in the southwest region, according to the union representing flight attendants for the airline.
DALLAS - Dallas-based Southwest Airlines will soon cut routes and staff in the southwest region, according to the union representing flight attendants for the airline.
An internal memo obtained by CNBC, shows that Southwest is reportedly cutting flights to 16 cities from Atlanta, Georgia.
The changes are set to begin in April of next year.
As part of the reduction in Atlanta, Southwest reportedly plans to cut 140 pilots and 200 flight attendants from the Atlanta-based crew.
The news comes as the carrier remains at odds with the Elliott Investment Group, who recently acquired a significant stake in the company.
FILE - A Southwest Airlines plane approaches the runway. (DANIEL SLIM/AFP via Getty Images)
The investment group claims the airline needs a change to be more innovative and improve its financial performance.
The airline says such a change while the airline is implementing changes to its operations would be catastrophic.
"A lot of it depends on what kind of an airline Southwest wants to be. If they want to be an airline that looks more like the other major carriers, which is basically a hub and spoke route system, then you know, they're going to have to be in big places like Atlanta, even if Atlanta is not their hub. They're going to need some hubs," said SMU economist Mike Davis.
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Southwest Airlines making changes to boost profits
Southwest Airlines' leaders are expected to lay out plans to boost profits at a meeting with investors. The Dallas-based carrier announced some changes ahead of Thursday's meeting, including cutting flights and jobs in Atlanta.
The president of the union representing Southwest Airlines spoke to FOX 4 News.
"Southwest Airlines management is failing employees while impacting customers. Management continues to make decisions that lack full transparency, sufficient communication with union leadership, and most alarmingly, a lack of focus on what has made the airline great, the employees," said Bill Bernal, the president of the Transport Workers Union Local 556.
At this point, it's unclear if any routes to Dallas Love Field would be affected by the upcoming changes in Atlanta.
We should learn additional details tomorrow when Southwest Airlines has its quarterly investment call.