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DALLAS—As many as 340 Southwest Airlines crew will be affected by service cuts in Atlanta, as the carrier works to control its costs and boost profits.
The changes, announced in an internal staff memo, come the day before a Sept. 26 investor event at which the carrier is set to lay out the company’s future-focused action plan amid pressure from an activist investor. The base will not be closed, clarifies Southwest in the memo obtained by CNBC, but rather staffing numbers will shrink by up to 200 for flight attendants, and by up to 140 for pilots for its April 2025 bid month. Both groups have signed new contracts in 2024, boosting pay by significant double-digit percentages.
“We pay our people good, market-leading wages but that does put our costs up,” noted COO Andrew Watterson in a recent internal video to employees, stating that network changes would be necessary. “There are some difficult decisions coming,” he said. “Not city closures but bigger changes for some cities.”
Scheduled drawdowns at Atlanta Hartsfield-Jackson International Airport (ATL) will begin in April 2025, confirms the Southwest Airlines Pilots Association (SWAPA), stating that the carrier will reduce its gates from 18 to 11. Southwest will have 58 flights per day from ATL as of April 2025, SWAPA says. The union is now working to determine what impacts ATL crews can expect to their bidding and commuting decisions. “It is simply amazing that the airline with the strongest network in the history of our industry is now retreating in a major market because this management group has failed to evolve and innovate,” SWAPA leadership writes in a memo to pilots.
TWU Local 556, representing the carrier’s flight attendants, says it is pursuing every channel available to advocate for its members.
“Flight attendants were informed by Southwest Airlines management today that they are being displaced from an established crew base in Atlanta as part of its reduction from one of the busiest airports in the world,” said Bill Bernal, president of TWU Local 556. “While Southwest management continued to assure flight attendants of the security and growth of its Atlanta base, promises were broken.”
Southwest gained access to ATL through its acquisition of AirTran, at the time the largest domestic market it did not serve. As it proceeded with integration, Southwest transformed Atlanta from a hub operation into its point-to-point model. The carrier currently has a 7.4% share of system seats in Atlanta, behind Delta Air Lines with 76.8%, and ahead of Frontier Airlines with 4.1%, according to CAPA data for the week of Sept. 23.
In July the Dallas-based airline announced changes to its model, seeking to attract new customers, boost flagging revenue, increase aircraft utilization and ultimately drive shareholder value. Though it has so far largely focused on product enhancements, Southwest has made some initial network moves, leaving four airports over the summer, before Watterson’s video message warned of “bigger” changes to come.
“We continue to optimize our network to meet customer demand, best utilize our fleet, and maximize revenue opportunities,” a Southwest spokesperson said after the Atlanta drawdowns became public. “Decisions like these are difficult for our company because of the effects on our people, but we have a history of more than 53 years of ensuring they are taken care of.”
The carrier is contending with aircraft delivery delays and changed booking patterns, factors contributing to its inability to continue previous levels of service at ATL. Displaced staff will be given an opportunity to transfer stations, it says. Going forward, Southwest intends to focus on points of strength, such as AUS, DEN, and DAL, and maintain a depth of service to backbone stations such as BWI, HOU, and MDW.
Elliott Investment Management, which has pushed for new leadership since becoming a large shareholder, intends to call a special meeting “as soon as next week,” unsatisfied with the board changes announced thus far; and unsupportive of the company’s current course. Southwest, in a rebuttal, has reiterated confidence in CEO Bob Jordan and its plan for transformation.
As it reduces service in Atlanta, Southwest is ramping up in Nashville, launching service to Albuquerque, New Mexico, Albany, New York, Jackson, Mississippi Memphis, Tennessee, Providence, Rhode Island, and Tulsa, Oklahoma beginning April 8. Also effective April 8, the carrier will expand upcoming red-eye offerings with daily service from Hawaii; operating to Las Vegas from Honolulu, Kona, and Kahului; and to Phoenix from Kahului and Honolulu. Southwest’s inaugural red-eye flights begin Feb. 13, from Las Vegas to Baltimore and Orlando; Los Angeles to Baltimore and Nashville; and Phoenix to Baltimore.
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