{"id":103327,"date":"2025-02-22T12:14:22","date_gmt":"2025-02-22T12:14:22","guid":{"rendered":"https:\/\/peraltafinancing.com\/airline\/southwest-layoffs-delta-leaves-passengers-out-in-the-cold-cranky-flier\/"},"modified":"2025-02-22T12:14:22","modified_gmt":"2025-02-22T12:14:22","slug":"southwest-layoffs-delta-leaves-passengers-out-in-the-cold-cranky-flier","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=103327","title":{"rendered":"Southwest Layoffs, Delta Leaves Passengers Out in the Cold \u2013 Cranky Flier"},"content":{"rendered":"


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Southwest Announces Layoffs<\/h3>\n

Southwest Airlines disclosed the first layoffs in its 53-year history<\/a> with the carrier cutting about 1,750 corporate and leadership jobs, or roughly 15% of its non-union workforce. Southwest will save about $210 million this year with the cuts, and another $300 next year \u2014 but it will be hard to measure what this does to the morale and spirit for those left in the aftermath.<\/p>\n

This is a move that appears to be pushed by activist investor Elliott which claimed nearly half the seats \u2014 five in all \u2014 on the carrier\u2019s board last year in a settlement that kept CEO Bob Jordan in place \u2014 for now. Most of those losing their jobs will stop working immediately but remain on Southwest\u2019s payroll through late April, with salaries, benefits, and bonuses still being paid until that time.<\/p>\n

The layoffs come as Southwest braces itself to roll out assigned seating and an extra legroom offering at the front of the plane later this year, slowly transforming itself into something that its founder Herb Kelleher likely wouldn\u2019t recognize today.<\/p>\n

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Endeavor Turns Passengers\u2019 Journey Upside-Down<\/h3>\n

Delta Connection Flight 4819<\/a> operated by Delta\u2019s wholly-owned subsidiary Endeavor Airlines flipped on its head Tuesday at Toronto\u2019s Pearson International Airport as the CRJ-900 came in for its landing from Minneapolis\/St Paul. All 80 people on board \u2014 76 passengers and four crew \u2014 survived the incident with a small number of passengers being sent to the hospital for further evaluation.<\/p>\n

The aircraft \u2014 N923XJ \u2014 was 16 years old, having been assembled in 2008. The weather in Toronto at the time of the incident was about what you\u2019d expect in Canada during winter \u2014 cold, snowy, and windy. Winds were out of the west at about 32 mph, and the temperature was 16.5 degrees Fahrenheit. YYZ remained closed for several hours after the incident, eventually reopening around 5 p.m. The investigation of the incident will be handled by the Transportation Safety Board of Canada.<\/p>\n

All 76 passengers were offered $30,000<\/a> from Delta in what it called a \u201cno-strings attached\u201d offer as compensation for the incident. In lieu of cash passengers were also offered a 60-second run through Delta\u2019s Biscoff tunnel in Atlanta to grab as much as they can or a three-minute Zoom call with Delta executive Tom Brady.<\/p>\n

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Spirit Ready to Exit Bankruptcy<\/h3>\n

Several months after filing for bankruptcy protection late last year, Spirit Airlines secured court approval to exit the process<\/a> via a lender-backed take-private deal. As part of the agreement, control of the carrier will go to a group that includes Citadel Advisors, Pacific Investment Management Co., Western Asset Management Co., and Gallons and Gallons of Yellow Paint Co.<\/p>\n

The restructuring will allow the airline to cut about $795 million in debt \u2014 roughly equal to what it makes on one flight in seat assignment and checked bag fees. Existing shares of Spirit stock will be canceled, but the carrier will allow shareholders to use them as kindling \u2014 provided they pay a $9.95 fee.<\/p>\n

Exit financing in the deal includes protection that restricts liability-management transactions that can favor some creditors over others. <\/p>\n

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Frontier Expands its Frontiers<\/h3>\n

Frontier Airlines announced 14 new routes<\/a> to begin this spring, and they include the airline returning service to both Boise and Spokane in the Pacific Northwest. Both airports will dip their toe back in the Frontierverse with just 3x weekly service to Denver. Boise to Denver will begin May 15 and be followed by Spokane on May 20. Both markets will be promptly exited 3 or 4 days later, we assume.<\/p>\n

Los Angeles and Washington\/Dulles are the winners in this expansion, with LAX adding daily flights to both Chicago\/ORD and Philadelphia beginning on May 22, while IAD adds daily flights to Dallas\/Fort Worth and Miami plus 3x weekly flights to San Juan. Miami is adding two other destinations in addition to the IAD flights \u2014 3x weekly service to Austin and 1x weekly to Aguadilla.<\/p>\n

Other additions for Frontier include Austin to Philadelphia (3x weekly), Cleveland to Boston and Nashville (3x weekly on both), Dallas\/Fort Worth to Norfolk (2x weekly), and Las Vegas to Tucson (3x weekly).<\/p>\n

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Etihad\u2019s Record Profit<\/h3>\n

Etihad Airways established a new record for itself with a cool $476 million<\/a> in profit in 2024 on $6.9 billion gross revenue, a 25% jump from 2023. Revenue growth came both in the form of passenger revenue and cargo. The carrier increased its ASKs (non-American speak for ASMs) by 28% while jumping passenger traffic by a third.<\/p>\n

The banner year of revenue increases also saw a 4% drop in CASM \u2014 generally record revenues with reduced costs lead to a pretty decent profit.<\/p>\n

The carrier used the momentum of last year to carry it into a strong January to start off 2025, flying 1.7 million passengers, an 11% jump from last year. Perhaps most important to its success, not one of those 1.7 million passengers flew to Newark on an Etihad plane, a key factor in keeping passengers coming back again in the future.<\/p>\n

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