As the global aviation industry gradually recovers, one of America's largest budget carriers, Southwest Airlines, is facing significant operational challenges. Due to delays in Boeing aircraft deliveries, the company has been forced to reduce working hours for pilots to cope with rising costs and a surplus of staff.
According to insiders cited by Reuters, Southwest Airlines plans to reduce pilot working hours starting in September of this year, a move expected to affect hundreds of pilots. This adjustment is in response to the challenges brought about by the delayed delivery of new aircraft, especially the significant reduction in Boeing 737-8 aircraft deliveries.
The head of the Southwest Airlines Pilots Association (SWAPA) mentioned that preliminary negotiations have taken place with the airline regarding Boeing's delivery status. The company currently employs about 12,000 pilots, with an average of 100 hours worked per month. However, Boeing's delivery delays have forced the airline to cease operations at four airports and reduce flights at two other airports. The company has also paused all
recruitment activities except for critical positions and expects the number of employees by the end of this year to be about 2,000 less than last year.
Southwest Airlines' CEO, Bob Jordan, pointed out in a financial report announcing a net loss of $231 million for the first quarter that, despite record operating revenue, the delay in new aircraft deliveries and current operational challenges pose a threat to the company's future development. He noted in an investor call that Boeing's delivery delays "pose significant challenges for 2024 and 2025," anticipating that Boeing will only deliver about 20 737-8 aircraft in 2024, less than half of the previously expected number.
Furthermore, Boeing's delivery delays have not only impacted Southwest Airlines but have also forced other carriers, including United Airlines, to adjust fleet plans, reduce capacity, and manage surplus staff. Boeing's first-quarter report showed a 36% decrease in aircraft deliveries compared to the same period last year, with thousands of commercial aircraft backlogged.
Currently, Boeing is undergoing a systematic inspection by the Federal Aviation Administration to identify and resolve potential quality control issues in the production process of some models. These challenges suggest that Boeing's "trust crisis" may persist for some time, having a long-term impact on the global aviation industry.
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