Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well

A line of Southwest Air Boeing 737 jets are parked near the company's production plant while being stored at Paine Field. will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing.

Southwest said it lost $231 million. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance,” including by slowing down hiring and asking employees to take time off.The Dallas-based carrier said it expects to end this year with 2,000 fewer employees than it had at the start of the year.

The closures will help the airline focus on more profitable locations and deploy a fleet of planes that will be smaller than it had planned. Southwest said it expects to get only 20 new 737 Max 8 jets from Boeing this year, down from the 46 it expected just a few weeks ago. It will offset some of the shortage by retiring fewer planes.

Dallas-based Southwest said that its loss, after excluding special items, was 36 cents per share. That was slightly worse than the loss of 34 cents per share that Wall Street expected.American said it lost $312 million as labor costs rose 18%, or nearly $600 million. The airline said it expects to return to profitability in the second quarter — a busier time for travel — and post earnings between $1.15 and $1.45 per share. Analysts expect $1.15 per share, according to a FactSet survey.

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