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    Southwest Airlines Agrees to Board Changes After Pressure From Elliott

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    The airline has been under pressure from the hedge fund Elliott to replace its top management and make other changes to increase its profits.Southwest Airlines on Tuesday announced an overhaul of its board of directors, including the planned departure of its executive chairman, Gary Kelly, after a meeting with a hedge fund that has called for sweeping changes at the company.The board announced the changes while expressing unanimous support for the airline’s chief executive, Bob Jordan, who with Mr. Kelly had been the target of sharp criticism from the hedge fund, Elliott Investment Management. In a statement, the airline said its board was “confident that there is no better leader” for Southwest than Mr. Jordan, who became chief executive in February 2022.“Bob has a proven track record over decades and, most importantly, he has what it takes to lead Southwest through a significant transformation and usher in a new era of profitable growth, innovation and industry leadership,” Mr. Kelly, who was chief executive before Mr. Jordan took over, said in a letter to shareholders.Southwest presented its plan to Elliott at a meeting in New York on Monday. It was not clear whether the overhaul would satisfy Elliott, which has a roughly 11 percent stake in the company. Elliott has called for both Mr. Kelly and Mr. Jordan to step down and has sought to replace most of the directors on the company’s board.Shares of Southwest were down nearly 3 percent in morning trading on Tuesday.“We are pleased that the board is beginning to recognize the degree of change that will be required at Southwest, and we hope to engage with the remaining directors to align on the further necessary changes,” Elliott said in a statement. “The need for thoughtful, deliberate change at Southwest remains urgent, and we believe the highly qualified nominees we have put forward are the right people to steady the board and chart a new course for the airline.”Mr. Kelly, who was the airline’s chief executive for nearly two decades before Mr. Jordan took over, said that he planned to retire after the airline’s annual meeting in the spring. Six other mostly longstanding board members plan to step down after a meeting in November.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Southwest Quits Four Airports in Cost-Cutting Drive

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      The airline expects fewer deliveries of Boeing planes than before, and cited “significant challenges” in achieving growth plans because of it.Southwest Airlines is ceasing operations at four airports, and reducing flights from others, in an effort to cut costs after its growth plans were curtailed by fewer than expected plane deliveries from Boeing.The airline, which flies only Boeing 737 planes, said on Thursday that delays from the embattled aircraft manufacturer were behind its struggles. Southwest reported a loss of $231 million for the first quarter, worse than analysts expected, sending its share price down 10 percent in early trading.To cut costs because of its curtailed growth plans, Southwest said it would cease operations at four airports from early August: Bellingham International Airport in Washington State, Cozumel International Airport, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport. It would also “significantly restructure” its flights from other airports, most notably by reducing flights at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.The airline’s woes were another ripple effect of the incident on Jan. 5, when a panel of a Boeing 737 Max 9 jet blew out midair during an Alaska Airlines flight. The event led to the temporary grounding of the popular jet model and a slowdown in production as Boeing has faced increased regulatory scrutiny over its quality control.Southwest said it expected to get 20 new Boeing jets this year, down from the 46 it had previously anticipated. The timing of the deliveries depends on the Federal Aviation Administration, which has capped Boeing’s production while it gets quality issues under control.“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” Southwest’s chief executive, Bob Jordan, said in a statement.The airline said it would limit hiring and end the year with 2,000 fewer employees. It also said it planned to put fewer planes out of service than it previously planned.On Wednesday, Boeing reported a $355 million loss for the first quarter, a steep setback that was nonetheless less than analysts expected.Demand for travel remains robust, and while other airlines are trying to manage the production slowdown at Boeing, Southwest appears more adversely affected than its rivals, many of which also buy planes from Airbus.American Airlines reported a quarterly loss of $312 million on Thursday, but provided a better-than-expected forecast for earnings in the current quarter and maintained its growth target for the year.Alaska Airlines and United Airlines recently reported narrower losses than expected in the first three months of the year, and said that they would have reported profits if the Boeing 737 Max 9 had not been grounded. Delta Air Lines was the only major airline to report a profit in the first quarter. More

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      Pet Policies for Delta Air Lines, United Airlines, American Airlines and Other Domestic Carriers

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      American recently relaxed its rules for pets traveling inside the cabin with their owners. Here’s what the major U.S. airlines require to travel with a pet.Flying with a pet can be expensive and confusing, with fees, weight limits, carrier size rules and the need to make sure there’s no loud barking (or meowing) on board.Recently, American Airlines relaxed its pet policy to allow passengers to bring a carry-on bag in addition to a pet in a carrier, and more private flight options have been emerging in recent years for pet owners who can afford them.Still, flying with large or medium-size dogs can be tricky, and many travelers are wary of leaving a pet in the plane’s cargo hold.For those traveling on the major carriers with their pets as carry-ons, here’s what do know about each major domestic airline’s policy.Southwest AirlinesOn Southwest, a Dallas-based carrier, two checked bags can fly at no cost, but not pets. Southwest charges $125 per pet carrier on its flights.Dogs or cats are allowed to travel below a seat in an approved carrier — up to 18.5 inches long by 8.5 inches high and 13.5 inches wide) — according to the airline.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Engine Cover on Southwest Plane Falls Off

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      The plane returned safely to Denver on Sunday after the crew reported that the cover came apart during takeoff and struck a wing flap. No injuries were reported.A Southwest Airlines flight safely returned to Denver International Airport on Sunday after the engine cover of a Boeing 737-800 fell off during takeoff and struck the wing flap, the Federal Aviation Administration said.Flight 3695 was headed to Houston but returned to the Denver airport around 8:15 a.m. after the crew reported the engine cowling, or cover, fell off.The plane, which had 135 passengers and five crew members, was towed back to the gate. The F.A.A. said it would investigate.In a statement, Southwest Airlines said its maintenance teams were reviewing the aircraft. Southwest said the passengers boarded another plane and arrived at William P. Hobby Airport in Houston approximately three hours behind schedule.“We apologize for the inconvenience of their delay, but place our highest priority on ultimate safety for our customers and employees,” the statement said.A video taken from a window near the plane’s wing posted on social media showed a blue cowling peeling off the engine and twisting in the wind as the plane moved down a runway before a large portion of it eventually fell off.“Let’s go ahead and declare an emergency for Southwest 3695 and we’d like an immediate return,” a crew member said, according to radio transmissions with an air traffic controller. “We’ve got a piece of the engine cowling hanging off.”The incident happened during a time of increased scrutiny about other commercial air travel episodes, starting with the harrowing Jan. 5 emergency on Alaska Airlines Flight 1282 in which a panel known as a door plug blew off a new Boeing 737 Max 9, delivered to the airline just months earlier.No one died but it triggered investigations into Boeing’s Max 9 and raised questions about quality control problems in its plane production.Then came a string of eight episodes last month involving United Airlines aircraft in a two-week span.Maintenance issues, loose tires and missing panels were among the issues afflicting six Boeing and two Airbus jets. A safety expert said such cases were typical and were being “falsely conflated with Boeing’s troubles.” More

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      Airlines Hoping for More Boeing Jets Could Be Waiting Awhile

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      The Federal Aviation Administration’s decision to limit Boeing’s production of 737 Max planes could hurt airlines that are struggling to buy enough new aircraft.Boeing hoped 2024 would be the year it would significantly increase production of its popular Max jets. But less than a month into the year, the company is struggling to reassure airline customers that it will still be able to deliver on its promises.That’s because the Federal Aviation Administration said on Wednesday that it would limit the plane maker’s output until it was confident in Boeing’s quality control practices. On Jan. 5, a panel blew off a Boeing 737 Max 9 body shortly after takeoff, terrifying passengers on an Alaska Airlines flight and forcing the pilots to make an emergency landing at Portland International Airport in Oregon. Almost immediately, the F.A.A. grounded some Max 9s.Since then, details have emerged about the jet’s production at Boeing’s facility in Renton, Wash., that have intensified scrutiny of the company’s quality control. Boeing workers opened and then reinstalled the panel about a month before the plane was delivered to Alaska Airlines.The directive is another setback for Boeing, which had been planning to increase production of its Max plane series to more than 500 this year, from about 400 last year. It also planned to add another assembly line at a factory in Everett, Wash., a major Boeing production hub north of Seattle.As part of the F.A.A.’s announcement on Wednesday, it also approved inspection and maintenance procedures for the Max 9. Airlines can return the jets to service once they have followed those instructions. United Airlines said on Thursday that it could resume flying some of those planes as soon as Friday.The move is another potential blow to airlines. Even though demand for flights came roaring back after pandemic lockdowns and travel restrictions eased, the airlines have not been able to take full advantage of that demand. The companies have not been able to buy enough planes or hire enough pilots, flight attendants and other workers they need to operate flights. A surge in the cost of jet fuel after Russia invaded Ukraine also hurt profits.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More