Southwest to get 13 Boeing 737s, retire 15 jets after $91 million Q1 loss

Published 7:54 am Thursday, April 16, 2009

Southwest Airlines posted a $91 million first quarter loss on Thursday.

“Our first quarter 2009 financial results are disappointing, but not surprising given the current economic environment,” said Gary Kelly, Southwest’s CEO, in a statement.

“We face the toughest revenue environment in our history. A rapid weakening in passenger demand during first quarter, particularly among business travelers, led to our first quarter net loss. Although competitively strong and financially resilient, we are not immune to the challenges the worldwide recession is having on air travel.”

The carrier already has pushed back delivery of some of its Boeing 737s but still plans to take delivery of 13 jets this year. Southwest, however, will retire at least 15 older 737s.

Southwest hopes to save on costs with those aircraft retirements but it also plans to cut jobs as well.

For more on Southwest and its fuel-hedging program, read The Wall Street Journalstory.