Southwest Airlines CEO Gary Kelly revealed that ongoing labor disputes with its mechanics union are costing the airline millions of dollars weekly in lost revenue and operational expenses, according to a statement made at a New York conference.
The Aircraft Mechanics Fraternal Association, representing 2,400 maintenance workers, has been engaged in contract negotiations with Southwest since 2012. The carrier recently filed a Texas lawsuit seeking to halt what it described as unlawful union actions, citing significant financial impacts.
Kelly also announced plans to expand Southwest’s fleet by 500 Boeing 737 aircraft, aiming to support new routes across North and South America. The airline is set to launch Hawaii-bound flights from California, part of its strategy to boost West Coast leisure travel.
The disruption follows a 2018 incident involving engine damage on a Southwest flight, which led to emergency landings and heightened scrutiny of the airline’s maintenance protocols.
