Southwest plans to chop flights in Atlanta whereas including them elsewhere. Its unions are sad

DALLAS (AP) — Southwest Airways plans to eradicate about one-third of its flights to Atlanta subsequent 12 months to save cash because it comes underneath strain from a hedge fund to extend earnings and enhance the airline’s inventory value.

The retreat in Atlanta, the place Southwest is much smaller than Delta Air Lines, will eradicate greater than 300 jobs for pilots and flight attendants, though they are going to have an opportunity to relocate, in line with the corporate.

“We proceed to optimize our community to fulfill buyer demand, greatest make the most of our fleet, and maximize income alternatives,” a Southwest spokesperson mentioned Wednesday.

Southwest executives are anticipated to element different modifications that it plans to make when it holds an investor assembly Thursday. The session is in response to Elliott Investment Management’s campaign to shake up Southwest’s management and reverse a decline in earnings over the previous three years.

Southwest will reduce 58 flights per day and cut back its presence at Hartsfield-Jackson Atlanta Worldwide Airport from 18 to 11 gates, in line with the Southwest Airways Pilots Affiliation, which says the information is painful for Atlanta-based staff.

“It’s merely wonderful that the airline with the strongest community within the historical past of our trade is now retreating in a significant market as a result of this administration group has didn’t evolve and innovate,” the union mentioned in a memo to pilots.

Invoice Bernal, president of the Transport Employees Union native representing Southwest flight attendants, mentioned his union is outraged by the discount of Atlanta jobs. He mentioned Southwest assured the union that it could develop in Atlanta.

“That is gaslighting at its best,” Bernal mentioned in a memo to union members. “But once more, flight attendants are paying the worth for poor administration selections.”

The Southwest spokesperson mentioned, “Selections like these are tough for our firm due to the results on our individuals, however we’ve a historical past of greater than 53 years of making certain they’re taken care of.”

Whereas retreating in Atlanta, Southwest printed its schedule via subsequent June on Wednesday, and it consists of new routes between Nashville and 6 different cities together with 5 new red-eye flights from Hawaii to Las Vegas and Phoenix. These additions begin in April.

Earlier this 12 months, Southwest pulled out of four smaller markets and introduced it could restrict hiring in response to weakening monetary outcomes and delays in getting new planes from Boeing.

Extra notably, CEO Robert Jordan mentioned in July that the Dallas-based airline will begin assigning passengers to seats and put aside almost one-third of its seats for premium service with extra legroom.