Southwest Airlines (NYSE:LUV) shares were flat in the first hour Wednesday, on word the carrier is closing two flight attendant bases amid its cost-cutting push that has also led to its first mass layoffs in its more than 50 years of flying.
The airline is closing the satellite bases at Florida’s Fort Lauderdale-Hollywood International Airport and at Texas’ Austin-Bergstrom International Airport, according to a flight attendant union memo.
“While the Company is within its rights to make this decision, it is not without impact on Flight Attendants,” said TWU Local 556 President Bill Bernal.
He said the union and company agreed to move the closure back one month, making it effective on July 1.
The airports are so-called satellite bases for flight attendants, not pilots, and smaller than its main bases.
A Southwest spokesman said the carrier opened the bases in early 2018 and that the 280 flight attendants who will be affected can transfer to the 12 main bases.
“This change will ultimately help strengthen our Crew network and support a more reliable operation for our Employees and Customers,” the airline said in a statement.
The Dallas-based carrier has been slashing unprofitable routes, affecting hundreds of front-line employees, including in Atlanta. Last month, the airline said it was will cut 15% of corporate staff, or 1,750 people, that would save it about $210 million this year.
LUV shares were unchanged Wednesday morning to $29.45.
