DALLAS (AP) — Southwest Airlines plans to eliminate about one-third of its flights to Atlanta next year to save money as it comes under pressure from a hedge fund to increase profits and boost the airline’s stock price.
The retreat in Atlanta, where Southwest is far smaller than Delta Air Lines, will eliminate more than 300 jobs for pilots and flight attendants, although they will have a chance to relocate, according to the company.
“We continue to optimize our network to meet customer demand, best utilize our fleet, and maximize revenue opportunities,” a Southwest spokesperson said Wednesday.
Southwest executives are expected to detail other changes that it plans to make when it holds an investor meeting Thursday. The session is in response to Elliott Investment Management’s campaign to shake up Southwest’s leadership and reverse a decline in profits over the past three years.
Southwest will cut 58 flights per day and reduce its presence at Hartsfield-Jackson Atlanta International Airport from 18 to 11 gates, according to the Southwest Airlines Pilots Association, which says the news is painful for Atlanta-based employees.