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Southwest Falls as Boeing Woes Force Hiring Freeze, Cost Review

  • Carrier halts most hiring on delayed deliveries of aircraft
  • Alaska Air capacity plans also ‘in flux’ amid delivery changes
Southwest Airlines airplanes at Baltimore Washington International Thurgood Marshall Airport in Baltimore, Maryland.Photographer: Kevin Dietsch/Getty Images
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Southwest Airlines Co. plans to cut capacity this year, halt most hiring and review its spending plans in response to reduced aircraft deliveries from Boeing Co., the planemaker facing regulatory and criminal investigations in the wake of a near-catastrophic accident in January.

The carrier expects a net loss this quarter and said in a regulatory filingBloomberg Terminal Tuesday that it’s re-evaluating prior guidance for the full year because of the slowing growth. Hiring has already stopped for multiple work groups, including pilots and flight attendants, and Southwest expects to end the year with lower headcount than in 2023.