DALLAS – The Dallas–based (DFW) low-cost carrier (LCC) Southwest Airlines (WN) aims to reduce costs and improve its margins by placing a freeze on hiring. The airline will also delay other activities, such as team building and offering internships during the summer.

WN CEO Bob Jordan said the airline is working hard to return to strong financial performance, but more must be done to achieve this target. WN is expected to report its fourth-quarter results on January 30. CNBC reports that WN’s shares have increased 14% over the past 12 months. 

Last year, WN was pressured by Elliott Investment Management, which called for a change in its CEO. However, the vote in October 2024 saw Elliott win only five board seats, meaning Jordan remained in leadership at WN.

Plan to Increase Profitability 

Last year, WN introduced a plan to drive up profitability. The plan disposed of a decades-old open flight seating model (in favor of assigned seating) and created a section of the aircraft that offers extra legroom. 

The carrier commenced the operation of overnight flights and scrapped some of its unprofitable routes. The LCC also terminated operations at its Atlanta (ATL) hub.

“We made a lot of progress in 2024, and we have a lot of tangible momentum ... but we’re still far from our goal of returning to industry-leading profit margins,” Jordan told staff.

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