American Airlines and Southwest Airlines both lost money in the first quarter, and Southwest said Thursday it will limit hiring and close operations at four airports.
Southwest expects to end this year with 2,000 fewer employees than it had at the start of the year.
Airlines are dealing with higher labor costs and delays in getting new planes from Boeing, which is limiting their ability to add more flights at a time of high demand for travel.
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 FactSet.
The first-quarter loss amounted to 34 cents per share excluding special items, which was worse than the loss of 27 cents per share forecast by analysts.
Revenue was $12.57 billion.
