Southwest to cut service and staff in Atlanta to cut costs

Southwest Airlines is planning to reduce service to and from Atlanta next year, eliminating more than 300 pilot and flight attendant positions, according to a company memo seen by CNBC.

The changes come a day before Southwest's investor day, when executives will outline the company's plan to cut costs and boost revenue as pressure mounts from activist investor Elliott Investment Management.

Southwest has informed its staff that it will not close its Atlanta crew base, but will instead reduce its staff by up to 200 flight attendants and up to 140 pilots by the April 2025 hiring month.

The airline is not laying off crews either, but they will likely have to apply to work from other cities.

Southwest will reduce its Atlanta presence from 18 to 11 gates next year, according to a separate memo from the pilots union.

It will serve 21 cities from Atlanta starting in April next year, up from 37 in March, the airline said.

“While we do everything we can before making difficult decisions like this, we simply cannot afford to continue to suffer losses and must make this change to help restore our profitability,” Southwest said in its memo. “This decision in no way reflects on the performance of our employees, and we are proud of the hospitality and efforts they have made and will continue to make with our customers in ATL.”

Unions representing Southwest pilots and flight attendants have criticized the airline for staffing and service cuts.

“Southwest Airlines management is failing employees while simultaneously hurting customers. Management continues to make decisions that lack full transparency, sufficient communication with union leaders, and most alarmingly, a lack of focus on what has made the airline great: its employees,” said Bill Bernal, president of the flight attendants union.

A Southwest spokesperson confirmed the changes, saying the airline “will continue to optimize our network to meet customer demand, best utilize our fleet and maximize revenue opportunities.”

The airline had already pulled out of certain airports, some of which it experimented with during the pandemic to focus on more profitable service.

Southwest is not only facing changing booking patterns and oversupply in parts of the U.S. market, but also aircraft delays. Boeingwhose 737 Max 7 aircraft, still uncertified, are years behind schedule

The airline's chief operating officer, Andrew Watterson, told staff last week that it will have to make “tough decisions” to boost profits.

The reduction in Atlanta, the world's busiest airport and Delta Air Lines The new hub is the latest development for the airline. In July, Southwest announced plans to eliminate open seating and offer more legroom on its planes, the biggest changes in its more than half-century of history.

Also on Wednesday, Southwest released an expanded schedule, with ticket sales continuing through June 4. In addition to planned cuts in Atlanta, the airline said it will increase service to and from Nashville, Tennessee. It will also begin offering overnight flights from Hawaii, beginning April 8. These include service from Honolulu to Las Vegas and Phoenix; Kona, Hawaii, to Las Vegas; and Maui, Hawaii, to Las Vegas and Phoenix.