DALLAS (AP) _ Southwest Airlines reported a surprisingly large loss in the first quarter — $91 million — due to weak traffic during the recession.
The Dallas-based company is freezing hiring and offering buyouts to employees to trim its work force.
Southwest’s first-quarter loss included $71 million due to falling value of its fuel hedges.
CEO Gary Kelly called the results “disappointing but not surprising” given the current economic environment.
Southwest will offer voluntary buyouts to all 35,000 workers — except top officials.
Kelly says the carrier is “modestly overstaffed.” He declined to say how many jobs he wants to cut.
Southwest is proceeding with expansion, including new service at New York’s LaGuardia Airport and Boston’s Logan Airport.