Southwest Airlines is ending service at four airports and laying off 2,000 employees

DALLAS — American Airlines and Southwest Airlines both lost money in the first quarter, and Southwest said Thursday it will curtail hiring and close operations at four airports.

Southwest expects to end this year with 2,000 fewer employees than at the beginning of the year.

Airlines are facing higher labor costs and delays in getting new planes from Boeing, limiting their ability to add more flights at a time of high travel demand.

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 was 34 cents per share excluding exceptional items, which was worse than analysts’ forecast loss of 27 cents per share.

Sales were $12.57 billion.

Southwest said it has lost $231 million and will reduce its workforce, offer employees voluntary furloughs and stop flying to four airports: Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s main operations are based at the smaller Hobby Airport.

CEO Robert Jordan said the airline responded quickly “to address our financial underperformance” and to deal with delayed deliveries of new aircraft by Boeing.

The airline expects to have 802 aircraft by the end of the year, down from an earlier plan of 814 aircraft.

The Dallas-based airline said its loss, after excluding special items, was 36 cents per share. That was slightly worse than the 34 cents per share loss that Wall Street expected, according to a FactSet survey.

Revenue rose to $6.33 billion, lower than analyst expectations of $6.42 billion.